Pinnacle’s Fall Into Bankruptcy
Pinnacle Group placed the properties into Chapter 11 protection in May, burdened by more than $500 million in mortgage debt. The bankruptcy filings followed a spike in city housing violations and persistent claims from tenants that many apartments suffer from hazardous conditions.
Residents across multiple buildings have accused Pinnacle of long delays — or outright failures — in addressing repair requests. Letters submitted to the bankruptcy court describe burst pipes, gas leaks, bug infestations and other unresolved problems inside their homes.
What Went Wrong
Advisers to the Pinnacle properties said the financial collapse was driven by a surge in interest rates, inflation-fueled operating costs and declining rent collections, a combination that proved unsustainable even for a large landlord.
Summit’s Expanding Footprint
Summit Properties owns a broad mix of real estate, including regional shopping malls, New York City apartment buildings and office properties in Manhattan, according to its website. The proposed acquisition would significantly expand its presence in the city’s residential market, placing it at the center of one of the largest multifamily restructurings now unfolding in bankruptcy court.
As the auction nears, the fate of thousands of tenants — and hundreds of millions of dollars in distressed real estate — hangs in the balance.
