It is easy to conflate a politician’s personal activism with their official executive actions, but the public record regarding Mayor Zohran Mamdani’s attempt to block the Summit Properties deal suggests a primary focus on tenant welfare rather than international divestment.
While critics point to Mamdani’s history of advocating for Palestinian rights, the legal framework of this specific intervention was rooted firmly in New York City’s housing crisis.
The deal involved over 5,000 rent-stabilized apartments across 90 buildings, formerly held by the Pinnacle Group.
For years, these buildings were synonymous with neglect.
Under Pinnacle, residents endured collapsing ceilings, persistent pest infestations, and hazardous living conditions.
By the time the portfolio reached bankruptcy court, it was burdened with over $12 million in unpaid city fines.
On his first day in office, Mayor Mamdani visited one of these Brooklyn buildings, signaling that his administration would no longer treat such neglect as a private business matter.
When the city filed a motion in U.S. bankruptcy court to block the sale to Summit Properties USA (a subsidiary of the Israel-based Summit Group), the arguments were strictly operational:
- The city highlighted that Summit’s existing NYC holdings already carried over 780 open violations, including nearly 300 “immediate hazards.”
- The administration argued that Summit had not demonstrated the financial “will or resources” to rehabilitate such a massive, deteriorating portfolio.
- The city utilized its position as a creditor (due to Pinnacle’s millions in unpaid fines) to justify its seat at the table.
While outlets like the Jerusalem Post framed the move as an extension of Mamdani’s anti-Israel-investment stance—noting his revocation of anti-boycott executive orders—a neutral approach suggests otherwise.
Meanwhile, the judge rejected the city’s bid, not because of bias in favor of Israel, but because the court prioritized the highest bidder in the bankruptcy process.
On this specific issue, the evidence points to a mayor attempting to fulfill a campaign promise of aggressive tenant protection. While Mamdani’s broader foreign policy views remain a point of intense debate, the Summit Properties intervention appears to be a matter of landlord accountability rather than nationality-based targeting.
It is actually a test of how far a “tenant-first” administration could push the limits of bankruptcy law to prevent another “slumlord” scenario.
(Written with the help of AI.)
Writing by Dr. Dannielle Blumenthal 