A bankruptcy judge has rejected the city’s bid to pause the auction of more than 5,000 mostly rent-stabilized New York apartments, clearing the way for a possible takeover by Summit Properties.
The apartments were put up for sale as part of a bankruptcy suit connected to Joel Wiener’s Pinnacle Group. The judge’s decision represents not only a likely change in ownership in New York’s multifamily market but a reminder of the limits to city power when it comes to the dealings of private companies.
The Mamdani administration earlier this week had asked for a 30-day pause on the sale to evaluate the transfer to Summit and explore potential alternatives. That followed similar requests from a coalition that included tenants, elected officials and the housing department under Mayor Eric Adams to delay the sale, originally with the hope that a nonprofit or other entity might be able to draw up a workable bid. Mayor Zohran Mamdani had taken things further, publicly championing the cause and vowing to intervene for tenants…