Summit Clears Violations, But Story is City Hall’s Playbook

Summit Properties says it delivered on a promise that helped win over a skeptical bankruptcy court. The tenants involved say that promise is still unfulfilled.

The dispute offers an early glimpse into what multifamily owners can expect under Mayor Zohran Mamdani’s administration: relentless scrutiny, public scorekeeping and a willingness by City Hall to align itself with organized tenants.

Two months after taking control of Pinnacle Group’s troubled 5,100-unit rent-stabilized portfolio, Summit says it cured more than 3,000 housing code violations, hitting chair Zohar Levy’s commitment to fix half of the roughly 6,300 violations that existed when the bankruptcy case was heard in January.

But the Union of Pinnacle Tenants argues the goalpost has shifted. Since the sale closed, the city launched an inspection blitz that uncovered roughly 6,000 additional violations, leaving Summit far from the finish line by the tenants’ math.

For Summit, demonstrating rapid improvements is critical to proving it can stabilize one of the city’s largest rent-stabilized portfolios, after spending months battling accusations that it was an unsuitable buyer. The company fought off an extraordinary effort by the city to block the acquisition and has pledged $30 million in repairs over five years.

For tenants and the administration, however, every concession and repair is evidence that pressure works. The Union of Pinnacle Tenants this week celebrated Summit’s decision not to pursue rent arrears that predated its ownership as a victory won through organizing.

City officials echoed that framing. Cea Weaver, the former tenant organizer now leading the Mayor’s Office to Protect Tenants, characterized Summit’s commitments as gains secured through intervention and tenant advocacy.

That dynamic may be the bigger story. Mamdani’s City Hall is increasingly acting as an active participant in disputes between landlords and tenants, particularly in distressed housing situations.

Owners acquiring troubled portfolios have viewed code enforcement as a compliance challenge. Under the current administration, it may become something broader: a political test administered in real time.

The World Cup kicked off this week. Will it send the continent into a soccer frenzy? Time will tell. But these real estate stories will surely score with you like a Lionel Messi free kick.

David and Michael Shabsels’ camps to open for summer despite bankruptcy, bond default

A bankruptcy judge will allow the 30 camps owned by Simad Holdings to access individual operating accounts so they can pay expenses this summer, according to court filings.

Simad owners David and Michael Shabsels defaulted on their first payment to bondholders on May 31, then filed for bankruptcy June 4.

The Shabselses, who are brothers, raised about $195 million in Israel in December 2025 by issuing bonds secured by some of the camps, including New York’s Mohawk Day Camp and Camp Kiwi and North Carolina’s Camp Blue Star.

David Werner closes One Dag purchase with $250M JPMorgan loan

David Werner purchased the 870,000-square-foot One Dag Hammarskjöld Plaza from Rockpoint Group for $270 million, approximately half of the price Rockpoint paid in 2019.

JPMorgan provided Werner with a $250 million loan to finance the acquisition; Werner is planning an additional $60 million investment for upgrades to address the building’s 30 percent vacancy.

This acquisition continues Werner’s recent pattern of purchasing discounted commercial properties.

Judge tosses Koreins’ name-dropping 1 Penn Plaza lawsuit against Vornado

A judge tossed a lawsuit brought by the Korein family against Vornado over assessing the value of 1 Penn Plaza, which the Koreins own and Vornado has the ground lease to.

The Koreins’ lawsuit named prominent brokers, including Bob Knakal and Doug Harmon, who refused to represent the family in their negotiations against Vornado.

The family argued they are a smaller entity with less market influence than Vornado, making it difficult to secure representation.

Two Trees snags contract for $7.8M One Domino penthouse

Two Trees’ One Domino Square is solidifying its position in the North Brooklyn luxury market with its largest and most expensive duplex penthouse — Penthouse 1B — entering into a contract for $7.8 million.

If the deal closes, it will unseat Penthouse 1A as the priciest sponsor sale in the neighborhood, continuing the building’s trend of breaking its own sales records.

Since launching sales in fall 2024, the 160-unit project is more than 75 percent sold, having generated $340 million in sales to date under an in-house team.