Emerald Equity's Harlem Rent-Stabilized Buildings Return To Lender

What happened

On Tuesday, 11/10/2026, 15 rent-stabilized multifamily buildings in Harlem went to foreclosure auction at the New York courthouse at 60 Centre St., Bisnow New York reported. The buildings were once owned by Emerald Equity Group. Only one of the 15 got an outside bid. 417 E. 114 St. sold for $826K, just $1K above the minimum. The original loan on that building was $1.9M, according to court records. The bidder identified themselves only as Matt. The plaintiff, U.S. National Bank Association, took back most of the other buildings for a nominal $500 each, and one went for $1K.

The 15 buildings are part of a 38-building, 850-apartment portfolio that Mayor Zohran Mamdani got involved with in April. The city backed a bid by affordable housing developer Spatial Equity. At the time, the apartments had more than 2,300 housing code violations. CityLimits reported in July that Spatial Equity first offered $68M. Gothamist reported that the bid was raised to $110M last month and that creditors rejected it again. Tenant advocates had hoped the units would eventually go to the East Harlem El Barrio Community Land Trust. Vic Washington of the land trust, who also co-founded the East Harlem Tenant Union, blamed overlending and said lenders "don't want it on their books." He said the tenant union will keep organizing no matter who owns the buildings.

More auctions are coming. Court records show 13 buildings set for auction on 11/17/2026, and no date yet for the remaining 10. One building, 419 E. 114th St., already went back to the lender on 08/04/2026 for $500. Its upset price, the minimum for the auction, was $1.5M, which indicates there were no outside bidders. Bisnow notes this is the second time the Mamdani administration has tried and failed to steer the sale of a large, distressed rent-stabilized portfolio. Early in his term, Mamdani objected to the bankruptcy auction of roughly 5,200 Pinnacle Group apartments, and a bankruptcy judge allowed that sale to go ahead.

The debt goes back years. Emerald CEO Isaac Kassirer paid more than $350M in 2016 for a nearly 1,200-unit, 47-building portfolio. Emerald refinanced these properties with a $189M loan in late 2018, originated by Sabal Capital Partners through Freddie Mac's Small Balance Loan program. Kassirer planned to renovate units and remove them from rent stabilization. He did so for about 20% of the portfolio before the Housing Stability and Tenant Protection Act of 2019 (HSTPA) closed most deregulation paths and limited rent increases. Mack Real Estate Group, which held a preferred equity position, took control in January 2023. The Real Deal reported that Mack defaulted months later.