An auction of Pinnacle Group’s portfolio of thousands of bankrupt, largely rent-stabilized units is days away. But a stalking horse bidder has put a floor on what will be a fascinating look on how stabilized units are valued under the Mamdani administration.
Summit Properties USA reached a deal to acquire Joel Wiener’s portfolio of bankrupt buildings for $451 million, Bloomberg reported. The deal, disclosed in a bankruptcy court filing, is subject to being boxed out by better offers at the Jan. 8 auction.
The price point isn’t locked in for Summit, either. The firm’s purchase price could drop to $420 million if Flagstar Bank, the portfolio’s existing lender, doesn’t agree to any acquisition financing, according to court documents.
Pinnacle declined to comment to the publication, while Summit did not respond to requests for comment.
In September, an affiliate of Pinnacle moved to auction 93 New York City apartment buildings containing 5,100 units, mostly of the rent-stabilized variety. The auction plan came as a result of a bankruptcy case filed by the Wiener-connected parties in May; the bankrupt parties owe lender Flagstar more than $564 million.
Lawyers for the bankrupt entities blamed financial troubles on high interest rates, inflation in expenses, weak collections and tenant-friendly state legislation; the buildings generated more than $84 million in 2024.
Pinnacle fell behind on maintenance in the affected buildings. Housing code violations considered “immediately hazardous” increased fourfold at the affected buildings between 2019 and 2014, double the rate at similar rent-stabilized buildings.
Wiener became a billionaire in 2017, despite being a target of tenant complaints and fraud investigations. In 2022, he was penalized after admitting to not properly acknowledging needed capital repairs at a Forest Hills condo conversion.
Summit’s portfolio touches both the United States and Germany, including regional malls, office buildings and New York City apartments. Late in the summer, Summit partnered with Savanna to acquire the leasehold on Westbrook Partners’ 470,000-square-foot office building at 444 Madison Avenue for $50 million.
— Holden Walter-Warner
Read more
Joel Wiener’s Pinnacle Group places 5K units in bankruptcy
Joel Wiener looking to auction 93 bankrupt buildings
Savanna nabs another discounted office building with $50M short-sale deal
