A New York State Supreme Court justice has ruled against Blackstone in a tenant lawsuit seeking to prevent the firm from ending rent stabilization for 6,200 units at Stuyvesant Town-Peter Cooper Village, Manhattan's largest apartment complex—a decision that may impact the rent control status of up to 431,000 apartments throughout NYC.

In a decision made public on Thursday, Justice Robert Reed said a state rent reform law enacted in 2019 prevents the deregulation of units at the massive apartment complex, which was purchased by Blackstone in 2015 for $5.3B and encompasses 110 buildings with more than 11,000 units.

Justice Reed also rejected Blackstone's argument that the expiration of tax breaks it was receiving under NYC's J-51 incentive program allowed the company to end rent regulation for those units—a ruling that may impact the rent control status of up to 431K units in NYC whose owners have been receiving J-51 benefits.