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Summit Wins Auction for 5,100 Rent‑Stabilized NYC Apartments as Judge Denies City Delay

Court approval remains pending with objections due Sunday.

Overview

  • Summit Properties submitted the winning $451.3 million bid for roughly 90–93 Pinnacle buildings, totaling about 5,100–5,200 rent‑stabilized units, at a closed auction on Thursday.
  • U.S. Bankruptcy Judge David Jones rejected the Mamdani administration’s request for a 30‑day postponement, with a sale‑approval hearing set for Jan. 15.
  • City lawyers and tenant groups question Summit’s vetting, capitalization and potential links to Pinnacle associates, while the U.S. Trustee’s office also filed objections.
  • Summit says it is well‑capitalized with financing commitments, plans to hire new management, invest in repairs and preserve affordability, and projects a mortgage debt cut of more than $275 million with lower interest costs.
  • The city is a creditor claiming roughly $12.7 million in unpaid fines tied to Pinnacle’s long‑troubled portfolio, which has thousands of code violations and tenant complaints.