A deteriorating apartment in Inwood reveals the deepening crisis at Pinnacle Group, a major NYC landlord now in bankruptcy on dozens of rent-regulated buildings. Tenants report years of neglect, while Pinnacle blames rising costs, interest rates, and rent laws. Critics say overleveraging and poor maintenance are to blame. The case highlights growing pressure on New York’s rent-stabilized housing system. They write:
The ripped bed cushion bulging out of the empty window frame was a telltale sign: It was going to be ugly inside the apartment on W. 207th St., Manhattan’s northernmost tip. Trash was strewn everywhere, the mattress covered in mold and the bathtub full of brown water. Mice and cockroaches have long been the unit’s only residents, according to neighbors.
The brick building in Inwood is one of roughly 8,100 rent-regulated apartment units managed by Pinnacle Group, overseen by New York City landlord Joel Wiener. Since the early 1990s, Wiener has amassed a fortune running cheap rentals, fixing them up and raising the rent where possible. […]
Industry professionals say it’s a stark example of financial distress facing many New York City landlords who are being crushed by higher interest rates, years of deferred maintenance and a 2019 law that restricted rent increases.
Adding to landlords’ angst is leading New York City mayoral candidate Zohran Mamdani, a populist who has promised to combat the city’s affordability crisis by freezing rent for tenants in regulated apartments. […]
Read more here.
