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Judge Rejects NYC Bid to Stall Pinnacle Sale, Paving Way for Summit’s $451 Million Deal

The ruling curtails City Hall's leverage before a hearing to finalize Summit Properties' purchase of a 90-building rent-stabilized portfolio.

Overview

  • U.S. Bankruptcy Judge David Jones denied the city’s request to delay or intervene after officials cited creditor status tied to more than $12 million in unpaid fines.
  • Summit Properties USA is the winning bidder for more than 5,000 rent-regulated units, with court approval expected to be taken up at a Thursday hearing.
  • Pinnacle filed for Chapter 11 following loan defaults nearing $600 million and widespread code violations across its buildings.
  • Tenant groups warn a new private owner could perpetuate neglect, while city leaders vow to push for repairs and adherence to rent stabilization rules.
  • Mayor Zohran Mamdani’s housing agenda faces added political scrutiny over his selection of Cea Weaver, who has expressed regret for some past statements.