Summit Bids $451 Million for 80 Bankrupt NYC Rental Properties

Summit Properties USA has offered to purchase a vast portfolio of bankrupt New York City apartment buildings for $451.3 million, setting the stage for a court-supervised auction in January that could reshape ownership of thousands of rent-stabilized homes.

According to court documents filed on Dec. 23, Summit Gold Inc has been named the stalking horse bidder for a collection of approximately 80 properties currently controlled by Pinnacle Group. The buildings, which span boroughs including Brooklyn, Manhattan, Queens, and the Bronx, contain around 5,100 mostly rent-stabilized apartment units. As stalking horse bidder, Summit establishes the minimum purchase price, although higher competing offers may emerge during a Chapter 11 auction scheduled for Jan. 8.

While the initial offer stands at $451.3 million, the proposed purchase price could drop to approximately $420 million if Flagstar Bank NA, the existing lender to the properties, does not agree to help finance the acquisition, the filings state. The court papers also note that any buyer—whether through purchase or refinancing—must honor all current tenant leases.

Summit Properties owns a variety of real estate assets, including regional shopping malls and residential and office buildings located in Manhattan, according to information on the company’s website. A representative for Summit did not immediately respond to requests for comment. Pinnacle Group declined to provide further information, saying only, “beyond what is filed on the docket at this time.”

Pinnacle placed the portfolio of roughly 80 buildings into Chapter 11 bankruptcy in May. The properties carry over half a billion dollars in mortgage debt. The filings followed reports of rising housing violations across the buildings and resident complaints about substandard living conditions, including delayed or unfulfilled repair requests.

Bankruptcy court documents include letters from tenants detailing unit issues such as burst pipes, gas leaks, and insect infestations. Tenants have accused Pinnacle of being slow to respond—or failing altogether—to longstanding maintenance concerns.

Advisers to the Pinnacle properties have said that the bankruptcies were triggered primarily by a rise in interest rates, increased operating expenses driven by inflation, and declining rent collections.

The case is listed as Broadway Realty I Co LLC, number 25-11050, in the U.S. Bankruptcy Court for the Southern District of New York.