Newsdesk
Dec 24, 2025

Federal Judge Delivers Blockbuster Ruling on Zohran Mamdani's Order

Mamdani Visits WH After Federal Judge Blocks NYC Bankruptcy Sale

A federal judge has temporarily blocked Mayor Zohran Mamdani’s attempt to stop the bankruptcy sale of more than 5,000 rent-subsidized apartments across New York City, dealing an early blow to the newly sworn-in mayor’s housing reform agenda.

U.S. Bankruptcy Judge David Jones of the Southern District of New York recently ruled that the city could not intervene in the ongoing sale of properties owned by Pinnacle Group, one of the city’s largest landlords. The company declared bankruptcy in May after defaulting on $560 million in loans, and the Mamdani administration has claimed it owes the city $12.7 million in unpaid housing code fines.

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.

City lawyers countered in filings that Summit might not have the financial strength to rehabilitate the buildings, warning that “continuing losses and mounting expenses might lead to additional bankruptcies or reorganizations, a state of financial and social chaos potentially worse than the current situation.”

Other posts