Summit Properties USA has stepped forward with a $451 million bid to acquire dozens of New York City apartment buildings pushed into bankruptcy, a sweeping deal that could reshape housing for thousands of tenants across the city.
Court filings show the transaction centers on properties owned by Pinnacle Group, a longtime landlord whose portfolio collapsed under mounting debt, rising costs and tenant complaints.
Stalking Horse Bid Sets the Pace
Summit Gold Inc., an affiliate of Summit Properties, has been designated the stalking horse bidder, establishing the baseline price for roughly 80 apartment buildings spread across Brooklyn, Manhattan, Queens and the Bronx. Together, the properties contain about 5,100 apartments, most of them rent-stabilized, according to a Dec. 23 filing in bankruptcy court.
The designation gives Summit the inside track ahead of a Chapter 11 auction scheduled for Jan. 8, though the bid remains open to higher or competing offers.
Price Tag Could Shift
Summit’s offer totals $451.3 million, but court papers note the figure could fall to about $420 million if the current lender, Flagstar Bank NA, declines to finance the purchase. Any buyer, advisers stressed, would be required to honor existing tenant leases, keeping current rental agreements intact.
Summit representatives did not immediately respond to requests for comment. Pinnacle, through a spokesperson, declined to elaborate beyond what has been disclosed in court filings.
