Brooklyn Real Estate Deal Worth $451 Million Clears Legal Hurdle despite Mayor’s opposition
A US bankruptcy court has rejected New York City Mayor Zohran Mamdani’s attempt to halt a $451 million real estate transaction involving the US branch of the Israeli company summit Properties in Brooklyn. The ruling, delivered over the weekend, represents a significant setback for the mayor, who has prioritized tenant protection since taking office.
The deal encompasses more than 5,000 apartments across 90 buildings, the majority of which are subject to rent regulation. For Mamdani, the case held particular weight as one of the properties included in the sale is an abandoned building in Brooklyn he visited on his first day in office, were he vowed city intervention on behalf of the residents.
The city’s legal challenge, filed last week, argued that Summit lacked the “will or resources” to adequately rehabilitate the aging buildings. City officials presented evidence during court hearings detailing over 780 open violations across Summit’s New York properties, with approximately 290 classified as posing an “immediate jeopardy” to tenants. This data was corroborated by documents Summit submitted to the Tel Aviv Stock Exchange in 2025, outlining its local holdings.
Despite these concerns, the judge allowed the bidding process to continue, denying the city’s request for a delay.
Zohar Levy, president of Summit Group, stated in an interview with The New York Times that the company is “deeply committed” to New York City and is already engaging with government officials to explore investment opportunities and improve affordability. A company spokesperson added that the buildings are older properties and that ongoing efforts are being made to address existing deficiencies.
The court’s decision comes as dozens of tenants from the Pinnacle buildings demonstrated outside Summit’s Manhattan offices, voicing concerns about deteriorating living conditions, including reports of collapsed ceilings and pest infestations.”We hope the judge stops the sale,” one resident declared during the protest.
The outcome underscores the challenges Mayor Mamdani faces in delivering on his campaign promises, notably a proposed rent freeze. While the mayor remains committed to advocating for tenants, industry analysts caution that his policies could perhaps exacerbate existing issues within rent-regulated buildings.
The next hearing for final approval of the sale is scheduled for Thursday.
Why did this happen? New York City Mayor Zohran Mamdani attempted to block a $451 million sale of over 5,000 apartments owned by Summit Properties, citing concerns about the company’s ability to adequately maintain the aging buildings and protect tenants. The city argued summit lacked the resources to address over 780 open violations, including nearly 290 posing immediate danger to residents.
Who is involved? Key players include Mayor Zohran Mamdani and New York City officials, Summit Properties and its president zohar Levy, tenants of the Pinnacle buildings, and the bankruptcy court judge who ruled against the city’s attempt to halt the sale.
What is the deal? The deal involves the sale of 90 buildings containing over 5,000 apartments, most of which are rent-regulated, from summit properties to an undisclosed buyer. The sale price is $451 million.
How did it end? The bankruptcy court rejected the city’s request to delay the sale, allowing the bidding process to continue. Despite evidence presented by the city regarding building violations and tenant concerns, the judge sided with Summit Properties, enabling the sale to move forward. A final approval hearing is scheduled for Thursday.
