Mayor Mamdani's Hopes of Slowing Pinnacle Apartment Sale Dashed as Judge Rejects City's Bid
In a significant setback for Mayor Zohran Mamdani's administration, a federal bankruptcy judge has rejected the city's attempt to delay the sale of nearly 5,100 rent-stabilized apartments owned by the embattled real estate firm Pinnacle Group.
The decision comes hours after Mamdani instructed the city's law department to intervene in the looming bankruptcy sale, which had sparked concerns among tenants that the properties would be sold to a new owner who might perpetuate the same neglectful practices as Pinnacle. The company has been plagued by disrepair and housing code violations, earning it a reputation among tenants as an irresponsible landlord.
However, a federal judge, David Jones, denied the city's request, citing a lack of evidence that would support its bid to delay the sale. The court also questioned whether Summit Properties USA, which had lined up a $451 million bid for the apartments, could afford to make necessary repairs and maintain the properties while also fulfilling its financial obligations.
The Union of Pinnacle Tenants, which has been organizing efforts to slow down the sale, expressed disappointment but vowed to continue fighting for the rights of tenants. The group's organizer, Tracy Rosenthal, said that residents would not give up their fight, despite the setback.
Furthermore, an investigation by real estate news outlet BisNow found potential familial ties between Pinnacle and Summit Properties USA, which could raise further questions about the legitimacy of Summit's bid. It appears that Jonathan Wiener, the brother of Pinnacle's owner, Joel Wiener, has signed deeds for properties owned by Summit.
The decision marks an early test for Mayor Mamdani's administration, which had campaigned on aggressively protecting tenants and freezing rents in rent-stabilized apartments. However, this setback could add to concerns about the new mayor's ability to deliver on his housing promises.
In a significant setback for Mayor Zohran Mamdani's administration, a federal bankruptcy judge has rejected the city's attempt to delay the sale of nearly 5,100 rent-stabilized apartments owned by the embattled real estate firm Pinnacle Group.
The decision comes hours after Mamdani instructed the city's law department to intervene in the looming bankruptcy sale, which had sparked concerns among tenants that the properties would be sold to a new owner who might perpetuate the same neglectful practices as Pinnacle. The company has been plagued by disrepair and housing code violations, earning it a reputation among tenants as an irresponsible landlord.
However, a federal judge, David Jones, denied the city's request, citing a lack of evidence that would support its bid to delay the sale. The court also questioned whether Summit Properties USA, which had lined up a $451 million bid for the apartments, could afford to make necessary repairs and maintain the properties while also fulfilling its financial obligations.
The Union of Pinnacle Tenants, which has been organizing efforts to slow down the sale, expressed disappointment but vowed to continue fighting for the rights of tenants. The group's organizer, Tracy Rosenthal, said that residents would not give up their fight, despite the setback.
Furthermore, an investigation by real estate news outlet BisNow found potential familial ties between Pinnacle and Summit Properties USA, which could raise further questions about the legitimacy of Summit's bid. It appears that Jonathan Wiener, the brother of Pinnacle's owner, Joel Wiener, has signed deeds for properties owned by Summit.
The decision marks an early test for Mayor Mamdani's administration, which had campaigned on aggressively protecting tenants and freezing rents in rent-stabilized apartments. However, this setback could add to concerns about the new mayor's ability to deliver on his housing promises.
they really gotta figure out a way to save these apartments or atleast find some middle ground with summit properties, cant just let the sale go through without considering all the potential consequences for tenants 
I'm not surprised about this outcome... it feels like the system is stacked against our city's most vulnerable residents. The fact that a judge just waved their hands at the city's concerns about Summit Properties USA's qualifications is super concerning 
. And what's up with those familial ties between Pinnacle and Summit? It's like they're colluding behind the scenes to get away with this 
. I think Mayor Mamdani needs to take a closer look at his team and make sure they're not getting steamrolled by big money interests 
. If Summit Properties USA can afford to make repairs and maintain the properties while fulfilling their financial obligations, then I get it 
. But those familial ties between Pinnacle and Summit? That's some shady stuff 
. It raises questions about whether the sale is really in the best interest of tenants. I hope the Union of Pinnacle Tenants continues to fight for their rights, but maybe they need some external help too 
.
judge rejected city's bid to delay sale 
it's like they didn't even try 
i mean, what's next? gonna let some company that's got ties to the owner of pinnacle just swoop in and renovate all these apartments for who knows how much 
gotta keep fighting for tenants rights 