SUMMIT PROPERTIES WINS AUCTION FOR BANKRUPT NYC APARTMENTS
(Bloomberg) -- Summit Properties USA won a bankruptcy auction for a group of rent-stabilized apartments owned by the Pinnacle Group after a judge refused a request by New York City Mayor Zohran Mamdani to delay bidding.
Last year, Pinnacle placed approximately 80 properties carrying more than half a billion dollars in mortgage debt into Chapter 11 in May. The bankruptcy filings followed an increase in city housing violations at the properties and claims from residents that some units require repairs for various hazardous conditions.
Summit is a real estate investment and management firm that owns dozens of properties in New York City. The auction results must be approved by US Bankruptcy Judge David Jones before the sale can close.
Mamdani had tried to intervene in the auction, arguing that the city needed time to evaluate the bidding. Jones rejected that request this week, allowing the auction to go forward. The sale results were announced Friday afternoon in a court filing.
Summit said its purchase would reduce debt owed by those properties by more than $275 million, according to a company statement.
“This unlocks additional cash flow that can be utilized for capital expenditures and preventative maintenance,” Summit said in the statement.
The case is Broadway Realty I Co. LLC, number 25-11050, in the U.S. Bankruptcy Court for the Southern District of New York.
--With assistance from Jonathan Randles.
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2026-01-09T23:06:31Z
