Three long-neglected rent-stabilized buildings found new ownership Wednesday, to the delight of the Mamdani administration. 

The Crown Heights buildings at 1018 Eastern Parkway, 1074 Eastern Parkway and 1392 Sterling Place have racked up nearly 1,000 open code violations. In an announcement, the city said that “Mayor Zohran Kwame Mamdani celebrated the transfer.”

A person rides a bicycle on the sidewalk in front of a large brown brick apartment building with multiple windows and a tree in the foreground.

1018 Eastern Parkway in Crown Heights

The Department of Housing Preservation and Development and the Mayor’s Office to Protect Tenants said they will work with the new owner, Mark Schwartz, and tenants to ensure that the 88 units are rehabilitated. Schwartz is the mayor of Teaneck, New Jersey.

Schwartz acquired the mortgage on the properties from Dime Community Bank before being approached by the city for the preservation deal, he told Bisnow.

The city will provide financing for the rehabilitation, which is expected to be in the ballpark of $10M, though a financial needs assessment is ongoing. The buildings will be owned and operated through a housing development fund corporation, a nonprofit structure that is subject to increased supervision by HPD.

“This is what we hope to be the first of many rent-stabilized buildings that the city preserves and continues to preserve as part of the administration’s influx of project managers,” Schwartz said.

Schwartz owns a small portfolio of walkups, including four preserved through Article XI over the last two years. The program reduces or eliminates taxes for HDFCs in exchange for affordable housing rehabilitation and preservation. He has eight more deals pending.

Born in Brooklyn, Schwartz has worked as a real estate management consultant for 30 years, working closely with HPD and the Department of Finance on water bills.

New deeds for the properties have not yet been recorded publicly.

Rent-stabilized buildings have fallen into disrepair across the city, burdened by ballooning costs, an incoming rent freeze and 2019 legislation that altered the economics underlying the properties. Mamdani has become a boogeyman for rent-stabilized landlords, with some fearing that his increased enforcement of housing rules could result in ownership transfers.

“Congratulations to the tenants on the transfer of their buildings away from these predatory owners,” HPD Commissioner Dina Levy said in a statement.

Levy, a former tenant organizer, told The Real Deal in February that the city does not “take over properties,” but that court-appointed administrators may manage unsafe buildings through the city’s 7a program. Properties with unpaid tax bills may also be transferred through the city’s third-party transfer program and lien sale.  

Four-story brick apartment building with fire escapes, surrounded by similar structures. Cars parked in front and a tree near the entrance.

1392 Sterling Place in Crown Heights

The properties are in the Department of Housing Preservation and Development’s Alternative Enforcement Program, which targets buildings with the most severe violations. For buildings in the program, the city can step in to make repairs and bill the landlord for those costs.

The issues at the properties date back to at least 2002, when the Division of Housing and Community Renewal ordered a rent freeze at 1074 Eastern Parkway until repairs were made. The previous owner, Rubin Dukler, allegedly ignored the order, according to previous reporting and court records.

HPD brought Dukler to housing court to force repairs in 2020, according to records. However, Dukler is reported to have died in February 2021, leaving tenants in the dark over whom to lodge complaints against.

Tenants began organizing in 2018 and officially formed the Dukler Tenant Union in 2025, according to the city’s announcement. The union has been advocating not only for repairs but also for the transfer of ownership away from the Dukler family. 

The union has already reached an agreement with Schwartz that commits to rehabilitating the three buildings with tenant oversight and moving toward resident ownership, according to the city.

Urban Homesteading Assistance Board Director of Policy Arielle Hersh used the sale to advocate for the Safer Homes Act, a bill that would expand the definition of distressed properties to allow for more third-party transfers, and the Community Opportunity to Purchase Act, which would give certain nonprofits and joint ventures first right of refusal when a distressed multifamily property goes on the market. 

“We are excited to see tenants move closer toward their goals, and know that we need tools like COPA and the SAFER Homes Act to make this possible for so many more tenants,” Hersh said in a statement.

UPDATE, SEPT. 3, 5:33 P.M. ET: This story has been updated with comments from Mark Schwartz.