Mamdani's first move to help renters faces a court setback

Summit Properties USA won an auction with a $451 million bid to buy about 5,150 apartments from the Pinnacle Group; the bankruptcy judge allowed the auction to proceed but must still approve the sale. A hearing on the proposed sale is scheduled for next Thursday and city officials say they are evaluating their options.

Mayor Zohran Mamdani made protecting renters a priority when he took office, and the fate of a large portfolio of rent-stabilized apartments has become one of his first tests. Summit Properties USA won an auction to buy buildings from the Pinnacle Group after Pinnacle filed for bankruptcy. City Hall filed court papers to delay the auction, citing concerns about Summit's ability or willingness to rehabilitate the properties. A judge declined to delay the auction but must still approve the proposed sale. Key facts: - Summit Properties USA placed a $451 million winning bid to buy roughly 5,150 apartments from the Pinnacle Group in bankruptcy auction. - City officials had asked the bankruptcy court to delay the auction, saying the prospective buyer "may not have sufficient resources or willingness to rehabilitate the properties." The judge did not grant the delay. - The judge must still approve the sale; a hearing on the proposed sale is scheduled for next Thursday and city officials say they are assessing their options. Summary: The auction result puts the potential new owner of thousands of mostly rent-stabilized apartments into a position that the city has questioned. The immediate next step is the court hearing next Thursday to consider approval of the sale, and the city's response is undetermined as officials evaluate possible actions.