Summit Closes Deal For Pinnacle Portfolio

A contentious multifamily deal has closed, ending a bankruptcy saga.

Summit Properties has closed on a portfolio of more than 5,100 mostly rent-stabilized New York apartments that were put into bankruptcy by Joel Wiener’s Pinnacle Group. Summit paid $451 million for the portfolio, in a deal that closed despite objections from tenants and the city.

It’s an end to a battle that set the tone for the Mamdani administration’s relationships with private landlords. The mayor said the city would intervene in the sale in his first days in office, raising the profile of the deal and of new landlord Summit Properties.

“We look forward to working with the City, our elected officials, stakeholders and residents to improve the buildings and move forward,” Summit chair Zohar Levy said in a statement. “We have an experienced and knowledgeable team, and we have the capacity, commitment and resources to stabilize our buildings and improve the lives of our residents.”

Summit said that the number of housing code violations in the portfolio, a sticking point for tenant advocates and the city, had increased significantly since the bankruptcy plan was confirmed, from 5,500 to 7,600. The company said it plans to spend $30 million over the next five years to cure violations and address maintenance concerns.

Pinnacle placed the apartments into bankruptcy in May 2025. In court filings, representatives blamed financial troubles on elevated interest rates and tenant-friendly statewide legislation that made it difficult to take apartments out of rent-stabilization.

The portfolio carried $564 million in debt to Flagstar Bank. Flagstar has been working to get loans tied to rent-stabilized multifamily properties off its books, and agreed to finance Summit’s purchase.

The bank loaned $338.5 million to Summit for the acquisition, about 75 percent of the purchase price. The bank agreed to a 5.25 percent interest rate, according to Summit’s financial disclosures, lower than the rates of 7.5 and 10.25 percent that Pinnacle says it paid at times. The loan will be due in three years. Summit’s total purchase works out to about $87,000 per unit.

The city first became involved in the bankruptcy process during the Adams administration, as it pushed for time for nonprofits and other “preservation-focused” buyers to step forward with bids.

However, Mayor Zohran Mamdani raised the profile of the case. Early in his tenure he said the city would intervene further. As he publicized tenants’ complaints about their living conditions, the administration tried to stop the auction and then, once that effort failed, objected to the sale to Summit.

At the U.S. Bankruptcy Court in Bowling Green, lawyers traded hours of testimony and argument over the sale. Tenants and the city argued that Summit didn’t have an adequate plan to fix up housing code violations in the portfolio. Those arguments didn’t meet the court’s standard to stop the sale however.