A Hilarious Flop
Blow to Mayor Mamdani: Bid to Halt Israeli Firm's $451M Apartment Purchase Fails in Court
What a hilarious flop for Comrade Mamdani, the socialist savior who struts into City Hall like a revolutionary messiah only to get slapped down by a judge faster than you can say "affordable housing hoax," desperately trying to sabotage a legit Israeli business deal because apparently fixing up dilapidated apartments is now a Zionist plot.
In a significant setback for newly elected New York City Mayor Zohran Mamdani, a federal court has rejected the city's attempt to block a massive real estate deal involving an Israeli company set to acquire approximately 5,000 dilapidated apartments across Brooklyn for $451 million. The ruling allows the transaction to proceed, despite the mayor's efforts to frame it as a fight for affordable housing and tenant protections.
The deal centers on Summit Real Estate, an Israeli firm that won a bankruptcy auction to purchase 5,150 units spread across 90 buildings in various Brooklyn neighborhoods. Many of these properties are in dire condition, plagued by issues such as cracked ceilings, pest infestations, faulty heating systems, and broken elevators. Summit plans to rehabilitate the buildings, which were previously owned by a landlord in financial distress.
Mamdani, who took office recently and has positioned himself as a champion of working-class New Yorkers, initiated legal proceedings shortly after his inauguration to delay or overturn the sale.
The city argued in court that Summit lacks the readiness or capability to properly restore the troubled properties, potentially exacerbating years of neglect rather than resolving it. To bolster its case, the administration presented evidence of over 780 open building and safety violations linked to other Summit-controlled assets in the city, including 290 classified as immediate hazards.
Additionally, the city highlighted its status as a creditor in the prior owner's bankruptcy proceedings, claiming it is owed about $12.7 million in unpaid fines and penalties for code violations. Officials sought at least a 10-day extension of the sale deadline to explore alternative buyers or options that might better safeguard affordable housing stock.
However, U.S. Bankruptcy Judge David Jones dismissed the city's motion, clearing the path for the deal to close as scheduled. Representatives from Summit responded positively, describing the acquisition as a "win-win" opportunity that would erase hundreds of millions in existing debts and enable substantial investments in long-overdue repairs and maintenance for the benefit of residents.