Federal Judge Approves Controversial Apartment Sale Amid Tenant Protests
In a move that has sparked widespread criticism, US District Court Judge David Jones formally approved the $451 million sale of over 5,100 rent-stabilized apartments to Summit Properties USA. The deal marks a significant setback for Mayor Zohran Mamdani's efforts to intervene on behalf of tenants who have long suffered from substandard living conditions in the buildings.
The purchase was finalized just hours after Mamdani took office, with the city ultimately failing to delay the sale or negotiate legally binding commitments to address thousands of outstanding housing code violations. Critics have accused the mayor of overstepping his authority by attempting to intervene in the bankruptcy process, which is typically focused on maximizing returns for lenders rather than tenant protections.
Summit Properties USA, a real estate firm backed by Pinnacle Group's lender Flagstar, purchased the portfolio after its previous owner filed for bankruptcy last May. The company has promised to invest $30 million over five years in repairs and maintenance, although critics question the accuracy of these estimates.
The deal has been met with skepticism from tenants' groups and city officials, who argue that Summit's track record on managing rent-stabilized apartments is concerning. Many residents have reported extensive damage and neglect within their buildings, including broken ceilings, mold blooms, and vermin infestations.
As part of the sale, Levy, CEO of Summit Properties USA, outlined a plan to resolve more than 6,500 housing code violations in the Pinnacle portfolio. However, critics point out that this timeline appears overly optimistic given the scope of the work required.
The approval of the deal has sparked concerns about the potential for Summit to replicate the same practices of neglect and exploitation seen under previous owners. Tenants have long expressed frustration with the slow pace of repairs and the prioritization of profits over people.
In a statement, Deputy Mayor Leila Bozorg acknowledged that the city's efforts have compelled Levy to outline his repair plan. However, she emphasized that tenants will continue to closely monitor the situation and push for better outcomes. The Union of Pinnacle Tenants has vowed to continue fighting for safer and more responsible management of their homes.
While some observers see a glimmer of hope in the involvement of Mayor Mamdani's administration, others remain critical of what they perceive as the city's limited reach or willingness to challenge entrenched interests. As one long-time resident noted, "We've always had slumlords. The building is beautiful. It just needs someone to come in and take care of it."
In a move that has sparked widespread criticism, US District Court Judge David Jones formally approved the $451 million sale of over 5,100 rent-stabilized apartments to Summit Properties USA. The deal marks a significant setback for Mayor Zohran Mamdani's efforts to intervene on behalf of tenants who have long suffered from substandard living conditions in the buildings.
The purchase was finalized just hours after Mamdani took office, with the city ultimately failing to delay the sale or negotiate legally binding commitments to address thousands of outstanding housing code violations. Critics have accused the mayor of overstepping his authority by attempting to intervene in the bankruptcy process, which is typically focused on maximizing returns for lenders rather than tenant protections.
Summit Properties USA, a real estate firm backed by Pinnacle Group's lender Flagstar, purchased the portfolio after its previous owner filed for bankruptcy last May. The company has promised to invest $30 million over five years in repairs and maintenance, although critics question the accuracy of these estimates.
The deal has been met with skepticism from tenants' groups and city officials, who argue that Summit's track record on managing rent-stabilized apartments is concerning. Many residents have reported extensive damage and neglect within their buildings, including broken ceilings, mold blooms, and vermin infestations.
As part of the sale, Levy, CEO of Summit Properties USA, outlined a plan to resolve more than 6,500 housing code violations in the Pinnacle portfolio. However, critics point out that this timeline appears overly optimistic given the scope of the work required.
The approval of the deal has sparked concerns about the potential for Summit to replicate the same practices of neglect and exploitation seen under previous owners. Tenants have long expressed frustration with the slow pace of repairs and the prioritization of profits over people.
In a statement, Deputy Mayor Leila Bozorg acknowledged that the city's efforts have compelled Levy to outline his repair plan. However, she emphasized that tenants will continue to closely monitor the situation and push for better outcomes. The Union of Pinnacle Tenants has vowed to continue fighting for safer and more responsible management of their homes.
While some observers see a glimmer of hope in the involvement of Mayor Mamdani's administration, others remain critical of what they perceive as the city's limited reach or willingness to challenge entrenched interests. As one long-time resident noted, "We've always had slumlords. The building is beautiful. It just needs someone to come in and take care of it."
this is so unfair they deserve so much better than what's being offered by summit properties usa 
the timeline for repairs seems pretty unrealistic, like 5 years to fix 6,500 housing code violations? that's just not enough time 
and what really matters is not just the money being invested but the people behind it too... do they actually care about the well-being of their tenants or are they just looking at this as a business opportunity 
. I mean, who decides that a bunch of people can just be treated like dirt and have their apartments left in shambles? It's not right. As a tenant myself, the thought of having to deal with broken ceilings, mold blooms, and vermin infestations is terrifying 
. And now we're being told that it's going to cost us $30 million over five years to fix these problems? That's just laughable 
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. But let's be real, it takes more than just one person to fix this kind of systemic problem. We need systemic change, not just empty promises 
.
Can you even believe this? A judge thinks $451 million is a good price for these disgusting apartments?! Like, have they even seen the state of these buildings? Broken ceilings, mold everywhere... it's like a biohazard in there. And now some company is gonna come in and just fix things because the mayor told them to. Newsflash: it ain't that easy! Tenants need real action, not just empty promises.
. The city's efforts might be better late than never, but it's still super frustrating that they didn't act sooner. It's like, shouldn't we prioritize people over profits? 
. Tenants have been suffering for too long, and it's time someone took responsibility 
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. And what really gets me is that Mayor Mamdani took office right after the sale was finalized, so you'd think he'd have had some time to negotiate better deals for the tenants. But I guess some people are just more interested in making a profit than in fixing problems 
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. I mean, 5,100 apartments can't all just magically fix themselves in 5 years 
. The fact that Deputy Mayor Bozorg even acknowledged this deal is like, what's taking so long? 