Flagstar Files Four Pre-Foreclosure Actions Against Pinnacle Over $600M in Loans

Flagstar Bank has filed four separate pre-foreclosure actions against more than half of Pinnacle Group’s residential portfolio over a group of loans totaling more than $600 million, according to filings with the New York State Supreme Court.

The bank filed four summonses last week in Manhattan, Brooklyn, Queens and the Bronx against nearly 100 entities owned by Joel Wiener’s Pinnacle, the filings show.

The first action was for a group of 22 Pinnacle buildings in Manhattan comprising 1,200 total units and about 1 million square feet, according to PincusCo, which first reported the news.

The properties are spread across Manhattan but are mostly in northern Manhattan, with the largest of the loans for a 142-unit building at 25 Hillside Avenue in Washington Heights, the filing shows. 

Many of the loans on that portfolio were refinanced in 2019 with New York Community Bank, which acquired Flagstar Bank in 2022, PincusCo reported. NYCB later renamed itself as Flagstar.

The other three filings cover 50 properties in Brooklyn totaling 2,700 units, 13 buildings in Queens comprising 960 units, and three properties in the Bronx totaling 267 units, the filings show.

Overall, Flagstar filed summonses against nearly 5,200 units, part of Pinnacle’s approximately 8,700-unit residential portfolio across New York City.

A spokesperson for Flagstar did not immediately respond to a request for comment, while a spokesperson for Pinnacle could not be reached for comment.

Before this, Flagstar’s largest pre-foreclosure action was a $100 million filing against Extell Development’s retail condos at the bottom of the landmarked Belnord building on the Upper West Side.

Isabelle Durso can be reached at idurso@commercialobserver.com.