Bankruptcy Judge Approves Mammouth Sale of Rent-Stabilized Apartments, Mayor's Efforts Falter
A federal bankruptcy judge on Friday approved the sale of nearly 5,100 rent-stabilized apartments to a US-based real estate firm called Summit Properties USA. The company purchased the portfolio for $451 million after its previous owner Pinnacle Group filed for bankruptcy last May.
The sale has sparked widespread concern among tenants and city officials, who say that Summit's track record on maintaining building conditions is questionable. In fact, Pinnacle accumulated thousands of open housing code violations before filing for bankruptcy, including hazards such as broken ceilings, mold blooms, and vermin infestations.
Mayor Zohran Mamdani had attempted to delay the deal and later win legally binding commitments from Summit to address the problems. However, Judge David Jones rejected these efforts, stating that he was "satisfied" with a plan to resolve over 6,500 housing code violations in Pinnacle's portfolio.
Summit Properties USA maintains that it intends to run its properties properly, citing sufficient financial resources to undertake necessary repairs and maintenance. The company also plans to hire new management firms to oversee the buildings, although details about these partnerships remain unclear.
Tenants who have been living in Pinnacle-owned apartments say that conditions are dire, with many documenting evidence of crumbling infrastructure and neglect. They argue that Summit's track record on maintaining building conditions is concerning and that their efforts may not translate into real change.
The sale has raised questions about the role of the city and its administration in ensuring that rent-stabilized apartment owners prioritize tenant needs. Mayor Mamdani campaigned on a platform to tackle issues such as neglecting landlords, but his efforts have been hindered by the complexities of bankruptcy proceedings and the high stakes involved.
Despite concerns, Summit Properties USA claims to be committed to improving building conditions and promises to invest $30 million in repairs over the next five years. The company also acknowledged that it has family ties with Pinnacle's previous owners, which had raised red flags during the sale process.
A federal bankruptcy judge on Friday approved the sale of nearly 5,100 rent-stabilized apartments to a US-based real estate firm called Summit Properties USA. The company purchased the portfolio for $451 million after its previous owner Pinnacle Group filed for bankruptcy last May.
The sale has sparked widespread concern among tenants and city officials, who say that Summit's track record on maintaining building conditions is questionable. In fact, Pinnacle accumulated thousands of open housing code violations before filing for bankruptcy, including hazards such as broken ceilings, mold blooms, and vermin infestations.
Mayor Zohran Mamdani had attempted to delay the deal and later win legally binding commitments from Summit to address the problems. However, Judge David Jones rejected these efforts, stating that he was "satisfied" with a plan to resolve over 6,500 housing code violations in Pinnacle's portfolio.
Summit Properties USA maintains that it intends to run its properties properly, citing sufficient financial resources to undertake necessary repairs and maintenance. The company also plans to hire new management firms to oversee the buildings, although details about these partnerships remain unclear.
Tenants who have been living in Pinnacle-owned apartments say that conditions are dire, with many documenting evidence of crumbling infrastructure and neglect. They argue that Summit's track record on maintaining building conditions is concerning and that their efforts may not translate into real change.
The sale has raised questions about the role of the city and its administration in ensuring that rent-stabilized apartment owners prioritize tenant needs. Mayor Mamdani campaigned on a platform to tackle issues such as neglecting landlords, but his efforts have been hindered by the complexities of bankruptcy proceedings and the high stakes involved.
Despite concerns, Summit Properties USA claims to be committed to improving building conditions and promises to invest $30 million in repairs over the next five years. The company also acknowledged that it has family ties with Pinnacle's previous owners, which had raised red flags during the sale process.
This is a total disaster! I mean, what's going on here? We're talking about rent-stabilized apartments, people are struggling to pay their bills, and now some faceless corporation comes in and starts making decisions that will affect our lives? 
I'm all for a bit of business investment, but come on! The judge just rubber stamped this deal without even doing his due diligence. I mean, 6,500 housing code violations? That's not something you can just gloss over! And now we're stuck with some company that has family ties to the previous owners? 
It's all about lining those pockets of Summit Properties USA at our expense. I'm not buying what they're selling, and I think our Mayor should be doing more to protect us. 
This is just another example of how the system is rigged against tenants like me...
! Rent-stabilized apartments are meant to be safe and affordable places for people to call home, but in this case, Summit Properties USA just bought them up without even promising to fix the damage that Pinnacle Group left behind. It's like they're just counting on people being too scared or powerless to do anything about it 
. And poor Mayor Mamdani trying to make a difference, only to have his efforts rejected by the judge. I'm all for giving companies another chance, but this feels like a slap in the face to the tenants who are already struggling. 
Can't we just prioritize people's lives over profits for once? 
. mayor mamdani's efforts to delay the deal were a good move imo, but now it seems like his voice is being drowned out by the big bucks 
. we need more tenant advocacy and not just empty promises from corporations 
. i'm all for DIY solutions and community organizing to take back control of our neighborhoods 
You know what's been on my mind lately? I was at this new food truck festival last weekend and they had this amazing Korean BBQ stand 
The flavors were so rich and deep, it really made me think about how some of our city's old buildings are like that too... neglected and in desperate need of love 
But anyway, back to the apartments... I feel for the tenants, man. It's just not fair that they're stuck with broken ceilings and mold because their landlord couldn't take care of it 
Maybe Summit Properties USA will step up the game and actually make some changes? 
We'll see...
i feel for the tenants who have been living in those apartments, they've got enough to deal with already and now summit's track record is sketchy at best...i hope they really do plan on fixing up these buildings cuz right now its not looking good 
. And let's be real, Mayor Mamdani trying to delay the sale and then getting shut down by the judge isn't exactly reassuring. It feels like he didn't have enough leverage to get Summit to commit to making those repairs.
.
and btw how much of the $451 million is going to actually go towards fixing the buildings? seems kinda sketchy how summit is gonna spend that cash 