Federal Judge Blocks NYC Bankruptcy Sale In Major Blow to Mamdani

Mamdani had directed the city’s Law Department to intervene, arguing the deal could worsen housing instability for thousands of tenants living in subsidized apartments.

But Judge Jones rejected the city’s motion, saying the bankruptcy auction must move forward.

Pinnacle, owned by billionaire Joel Wiener, controls more than 140 buildings and 9,000 units across the five boroughs.

Court filings show Summit Real Estate Holdings has offered $450 million to buy roughly 90 of the company’s properties.

“Completion of the bankruptcy auction process will bring financial stability along with the opportunity to stabilize services, outcomes which we would expect the City would not want to disrupt,” said Ken Fisher, an attorney representing Pinnacle.