Summit Properties Wins Auction to Acquire 5,100-Unit Pinnacle Portfolio

After first submitting a bid in late December, Summit Properties won an auction Thursday to acquire more than 5,100 rent-stabilized apartments owned by Pinnacle Group in New York City, according to reports.

Summit paid $451.3 million for the units, which span 90 New York City buildings and were placed into Chapter 11 bankruptcy by Pinnacle in May 2025 due to roughly $574.4 million in debt. Summit will take over as landlord for thousands of tenants who have claimed to be living in dangerous conditions. 

Among the apartment buildings part of the Pinnacle portfolio are 1296 Pacific Street and 1048 Union Street in Brooklyn.

New York City Mayor Zohran Mamdani tried to delay the sale of the properties in an attempt to give the city more time to evaluate Summit and explore alternatives to protect tenants in rent-stabilized apartments, but a federal bankruptcy judge rejected the attempt. Mamdani has made improving the quality and affordability of housing in New York City a key mission of his administration, saying he intends to “hold landlords who violate the law to account.”

Zohar Levy, the chairman of the board of Summit, said in a statement that the firm has reached out to the mayor’s office in an effort to work collaboratively on their plans for the newly acquired portfolio of properties. 

“We have reached out to the city and look forward to talking with the new administration and residents about our plans to invest in the portfolio and help make New York affordable for everyone,” Levy said in the statement.  

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.