A federal bankruptcy judge approved the sale of more than 5,100 rent-stabilized apartments in New York City to Summit Properties USA, an international real estate firm, for $451 million. The decision follows concerns from Mayor Zohran Mamdani and other city officials regarding tenant welfare amid numerous unresolved housing violations, according to Gothamist.
The deal concludes the bankruptcy process that began when the previous owner, Pinnacle Group, filed for bankruptcy last May following reports of building neglect. Tenants, city officials, and Attorney General Letitia James had previously raised concerns about Summit Properties USA’s portfolio, which has faced issues in other properties. Summit’s chair, Zohar Levy, has presented a plan to address more than 6,500 code violations. Judge David Jones stated during court testimony that the company has demonstrated the financial capacity to implement the plan.
Although the sale has been finalized, city Deputy Mayor Leila Bozorg highlighted the role of tenant advocacy in prompting Levy to commit to the repair plan, stating, "Our administration said from day one that we would make tenants a priority," in a statement obtained by Gothamist. The city’s involvement may have influenced the owners’ response. Meanwhile, the Union of Pinnacle Tenants, a citywide renters network, has expressed their priorities, stating, “We’re going to use our power to fight for our homes, better and faster repairs, an end to harassment, and more,” as they anticipate further action.
In response to concerns from tenants and city officials, Summit has committed to a plan allocating $30 million over five years for maintenance and repairs. The plan includes addressing approximately half of the violations within two months and the remainder within six months. Summit’s chair, Zohar Levy, said, "We look forward to working with the City and other stakeholders to improve these buildings and the lives of the residents," in a statement provided to News12. Flagstar, Pinnacle’s lender, did not respond to requests for comment, despite their support being a key factor in Summit’s bid.
Amid the complex proceedings, tenants such as Susan Rinkunas, a Brooklyn resident, have drawn attention to the conditions in their apartments, attending the courthouse in Lower Manhattan to support efforts to secure funding for home improvements. Rinkunas told Gothamist in an interview, "We are going to keep the pressure on no matter who wins the auction because we are organized and we deserve safe and dignified homes."
