Overview
- U.S. Bankruptcy Judge David Jones authorized the sale of the 93-building Pinnacle portfolio to Summit Properties, with closing expected within 90 days.
- Flagstar Bank will provide $338.5 million in financing, and Summit has posted $45.1 million in earnest money toward the $451.3 million purchase.
- Summit’s plan pledges $30 million for repairs over five years, including an immediate push to fix roughly half of about 6,500 violations in about 60 days and $10 million in the first year.
- After the judge pressed for added protections, Flagstar agreed to a $3 million revolving line of credit for upgrades as the city, the state attorney general, and tenant groups continued to seek binding guarantees and oversight.
- Officials questioned Summit’s past ties to Chestnut Holdings and Denali Management, while Summit said those firms will not be involved and plans to bring in two outside managers, including R.E.M. Residential for some buildings.