Federal Judge Approves Sale of 5,100 NYC Rent-Stabilized Apartments Amid Tenant Concerns
A federal bankruptcy judge on Friday approved the sale of over 5,100 rent-stabilized apartments to an international real estate firm, despite objections from New York City Mayor Zohran Mamdani and tenants' groups. The deal, worth $451 million, marks a significant setback for Mamdani's efforts to address thousands of open housing code violations in the city.
The sale of the portfolio, owned by Pinnacle Group, was part of a high-profile bankruptcy process that raised concerns about the condition of the buildings. Tenants and officials have long complained about the state of these buildings, citing issues such as broken ceilings, mold blooms, and vermin infestations. The company claimed it lacked the money to fix problems and pay its debts.
In a court filing, Summit Properties USA's chair, Zohar Levy, outlined a plan to resolve over 6,500 housing code violations in Pinnacle's portfolio within two months and six months for the remaining issues. However, critics argue that this plan lacks documentation and may not address the root causes of these problems.
The deal has sparked skepticism about Summit's ability to manage the properties and its own track record of racking up housing code violations. The company faces criticism from tenants and officials who say it is more interested in raising rents than investing in building maintenance.
Levy testified that his company has a "long-term vision" for investing in the properties and plans to spend $30 million on repairs over the next five years. However, this plan has been met with skepticism by many, given the company's history of neglecting building maintenance.
The sale marks a significant victory for Summit Properties USA, which is now one of New York City's largest owners of rent-stabilized apartments. The deal also comes amid a larger debate over the city's rent regulations and tenant protections.
As a result, the Union of Pinnacle Tenants, a network of renters who organized to block the sale, expressed disappointment but vowed to continue fighting for their rights. "We're going to use our power to fight for our homes, better and faster repairs, an end to harassment, and more," said Susan Rinkunas, a member of the tenant union.
Meanwhile, Deputy Mayor Leila Bozorg told Gothamist that tenants' efforts compelled Levy to outline the repair plan. However, she acknowledged that "this process has been difficult for the residents" and that her administration would continue to monitor the portfolio as part of its ongoing fight for tenants.
In a statement, Levy said his company looks forward to working with the city, officials, stakeholders, and residents to improve the buildings and move forward. Despite this, many are questioning whether Summit Properties USA is truly committed to addressing these issues or simply seeking to maximize profits.
The approval of the sale marks a significant blow to Mayor Mamdani's efforts to address tenant concerns and protect affordable housing in New York City. As one resident noted, "We've always had slumlords... The building is beautiful. It just needs someone to come in and take care of it."
A federal bankruptcy judge on Friday approved the sale of over 5,100 rent-stabilized apartments to an international real estate firm, despite objections from New York City Mayor Zohran Mamdani and tenants' groups. The deal, worth $451 million, marks a significant setback for Mamdani's efforts to address thousands of open housing code violations in the city.
The sale of the portfolio, owned by Pinnacle Group, was part of a high-profile bankruptcy process that raised concerns about the condition of the buildings. Tenants and officials have long complained about the state of these buildings, citing issues such as broken ceilings, mold blooms, and vermin infestations. The company claimed it lacked the money to fix problems and pay its debts.
In a court filing, Summit Properties USA's chair, Zohar Levy, outlined a plan to resolve over 6,500 housing code violations in Pinnacle's portfolio within two months and six months for the remaining issues. However, critics argue that this plan lacks documentation and may not address the root causes of these problems.
The deal has sparked skepticism about Summit's ability to manage the properties and its own track record of racking up housing code violations. The company faces criticism from tenants and officials who say it is more interested in raising rents than investing in building maintenance.
Levy testified that his company has a "long-term vision" for investing in the properties and plans to spend $30 million on repairs over the next five years. However, this plan has been met with skepticism by many, given the company's history of neglecting building maintenance.
The sale marks a significant victory for Summit Properties USA, which is now one of New York City's largest owners of rent-stabilized apartments. The deal also comes amid a larger debate over the city's rent regulations and tenant protections.
As a result, the Union of Pinnacle Tenants, a network of renters who organized to block the sale, expressed disappointment but vowed to continue fighting for their rights. "We're going to use our power to fight for our homes, better and faster repairs, an end to harassment, and more," said Susan Rinkunas, a member of the tenant union.
Meanwhile, Deputy Mayor Leila Bozorg told Gothamist that tenants' efforts compelled Levy to outline the repair plan. However, she acknowledged that "this process has been difficult for the residents" and that her administration would continue to monitor the portfolio as part of its ongoing fight for tenants.
In a statement, Levy said his company looks forward to working with the city, officials, stakeholders, and residents to improve the buildings and move forward. Despite this, many are questioning whether Summit Properties USA is truly committed to addressing these issues or simply seeking to maximize profits.
The approval of the sale marks a significant blow to Mayor Mamdani's efforts to address tenant concerns and protect affordable housing in New York City. As one resident noted, "We've always had slumlords... The building is beautiful. It just needs someone to come in and take care of it."
. they're saying the corp doesn't have a plan to fix all these problems and it's just about making more cash 
. if the corp just fixes up the buildings and raises the rents even more, it's not gonna help anyone 
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. hope the city can find a way to make sure these apartments are maintained and affordable 
their plan for repairs seems half baked, wont be long till the buildings are back to their old selfs... moldy ceilings & vermin galore 
. its all about the benjamins, not helping tenants 
. I mean, can't the city do anything right? They're selling off 5,100 apartments that are barely holding together for a bunch of profiteers who don't care about fixing the problems. It's like they're just leaving it all to rot for the next generation of tenants to deal with. And what really gets me is that Summit Properties USA has a history of neglecting building maintenance, so how do we know they're going to magically fix everything? 
they got like, a lot of history of neglecting building maintenance 
& their plan for repairs is sketchy 
$451 million is a lot, but are they just gonna use it to raise rents & leave the buildings in disarray? 
the tenants are like "hey, we've got problems here" but nobody's really listening. the city's all like "we'll keep an eye on it" but in reality, nothing changes.