A federal bankruptcy judge rejected New York City Mayor Zohran Mamdani’s request to delay the sale of more than 5,100 rent-stabilized apartments owned by Pinnacle Group. Pinnacle filed for bankruptcy last year after defaulting on over $560 million in loans and has faced thousands of housing code violations. The apartments may be sold to Summit Properties USA, which bid $451 million. The Union of Pinnacle Tenants has raised concerns about how the new owner will manage the buildings, as reported by Gothamist.
The city, a creditor with over $12.7 million in unpaid fines from Pinnacle, had questioned Summit’s ability to manage repairs while remaining profitable under regulated rents, but Judge David Jones rejected the administration's request. Deputy Mayor for Housing Leila Bozorg said, "And we will continue to fight to ensure any owner of this portfolio makes necessary repairs to bring the buildings up to code and respects the rent stabilization regulations," according to The Real Deal.
With the sale approaching, other potential bidders could still enter, creating uncertainty over Summit’s takeover. The Union of Pinnacle Tenants continues to seek alternatives, with organizer Tracy Rosenthal stating, "The Union of Pinnacle Tenants is not giving up the fight for 5,000 rent-stabilized homes," as per Gothamist.
