Judge considers sale of thousands of rent-stabilized apartments as officials push back
A federal judge has rejected the city's latest attempt to pause the bankruptcy sale of dozens of apartment buildings once owned by the Pinnacle Group.
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A federal judge has cleared the way for the sale of thousands of rent-stabilized apartments across New York City, despite strong opposition from the city, tenant advocates and now the New York state attorney general.
This decision means the sale of more than 5,000 rent-stabilized apartments - many tied to years of unresolved housing violations, can now move forward. The Office of the New York Attorney General is raising concerns, describing a track record of poorly maintained and potentially dangerous buildings connected to the proposed buyer.
A federal judge has rejected the city's latest attempt to pause the bankruptcy sale of dozens of apartment buildings once owned by the Pinnacle Group.
The company set to purchase the properties, Summit Properties USA, was selected as the successful bidder after a court-supervised auction held on Jan. 8.
The total purchase price: more than $451 million.
In a statement, the company says it plans to invest $30 million over the next five years to address existing housing violations and improve building conditions. Court filings show more than 90 buildings across Brooklyn and the Bronx are included in the sale.
In a statement, the company said, “We are confident that our remediation plan is adequately funded, practical and achievable. We look forward to working with the City and other stakeholders to improve these buildings and the lives of the residents.”
City officials say this ruling is not the end of the road and that they are still reviewing legal options to ensure buildings are brought up to code and that tenant protections are enforced.
