Mamdani Admin Objects to Summit’s Pinnacle Takeover

Days after the Summit Properties won a bankruptcy auction for 5,200 mostly rent-stabilized apartments from Pinnacle Group, the city has filed a formal objection to the sale.

Lawyers for Mayor Zohran Mamdani’s office asked a judge to stop the transaction, raising questions about insider dealing and saying that Summit has failed to show the ability to fix up the properties. It’s the second time the Mamdani administration has objected to the bankruptcy proceedings.

The objection is a last-ditch attempt by the Mamdani administration to throw its might behind tenants at the Pinnacle properties. A confirmation hearing for the sale is scheduled for Thursday.

“Our north stars in these proceedings have always been improving the habitability of the buildings in this portfolio and protecting their rent-stabilized status,” said Leila Bozorg, deputy mayor for housing, in a statement. “Any sale of the Pinnacle portfolio, whether to Summit Gold, Inc. or another bidder, must lead to improved conditions for tenants.”

The city argued in its objection that the sale deserves higher scrutiny because of the possibility of insider involvement. That appears to be an oblique reference to a Bisnow report last week that revealed Jonathan Wiener, brother of Pinnacle head Joel Wiener, signed several deeds for properties that Summit claims to own. A declaration from the state attorney general’s office supporting the city’s effort detailed the connections between Summit and Jonathan Wiener. Summit has denied that Jonathan Wiener had any involvement in the sale.

The city previously said it has yet to see evidence that Summit has the willingness and ability to fix housing code violations at the properties, arguing in court that the legal rents in the units were too low for Summit to both fix the units and profit from the sale.

The objection also referenced housing code violations at Summit’s existing properties, which a declaration by the attorney general’s office places around 4,000 open violations in a current portfolio of 3,000 units.

“The City submits that Summit must demonstrate that it has the resources, and moreover, the willingness and intent to cure the violations within the time period required by law and, if necessary, rehabilitate the Properties, while remaining financially sustainable,” the objection reads.

The state attorney general’s office argued that the city should be given time to come up with another buyer who would take better care of the buildings, or is at least owed a deeper explanation from Summit about its management plan.

A spokesperson for Summit said the company would be filing a plan to address the properties’ violations and capital needs.

“Summit is ready to work with the City, HPD, and the residents to improve and preserve this much needed affordable housing,” said Jordan Barowitz in a statement on behalf of Summit. “Delay will only slow the opportunity to make improvements that benefit the residents.”

The city also objected to the auction before it took place, hoping for a 30-day delay. But the judge threw out that effort last week.