Dozens of New York City apartment buildings managed by Joel Wiener’s Pinnacle Group, home to more than 5,100 rent-stabilized units, are now up for sale just months after the company filed for Chapter 11 bankruptcy.
Lawyers representing the buildings across Brooklyn, Queens, Manhattan, and the Bronx filed documents on Sept. 19, announcing plans to market the properties for a potential bankruptcy auction while also exploring refinancing offers.
The move comes as part of an agreement with Flagstar Bank, which holds over $564 million in debt on these properties and had filed foreclosure lawsuits earlier this year.
The court filings make clear that any sale or refinancing will not affect existing tenant leases. Potential buyers will be required to honor current agreements, ensuring tenants’ protections remain intact.
According to the documents, bidders must submit non-binding expressions of interest by Nov. 21, with a Dec. 21 bid deadline for final proposals.
If approved by a New York bankruptcy judge, an auction could take place in January 2026.
Real estate advisory firm Eastdil Secured has been retained to oversee the process and is already contacting potential third-party buyers.
For residents, a sale or refinancing could provide long-awaited relief. Many tenants have reported years of delayed or ignored repairs, including leaks, pest infestations, and other building issues.
Data from the city shows that “immediately hazardous” housing violations at Pinnacle’s properties quadrupled from 2019 to 2024, twice the rate of similar rent-stabilized buildings. Rising interest costs and operating expenses have compounded the company’s challenges.
Advisers to Pinnacle attribute the bankruptcy primarily to higher interest rates, inflation-driven expenses, and lower rent collections, alongside a 2019 state law limiting rent increases.
In 2024, the buildings generated about $84.4 million in revenue, according to financial statements filed in court.
The bankruptcy case is officially Broadway Realty I Co. LLC, case number 25-11050, in the U.S. Bankruptcy Court for the Southern District of New York.
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The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.
He also writes humorous articles about real estate, investors, and realtors.
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