Move comes after owner Joel Weiner of Pinnacle Group, which manages 15,000 apartments in the city, defaulted on his loan. This affects 1,083 apartments.
A New York State Supreme Court judge appointed a receiver to oversee a portfolio of 36 apartment houses owned by Pinnacle Group and the Praedium Group, which are being foreclosed on by Dune Real Estate Funds.
Joel Weiner, the head of Pinnacle Group, is a well-known landlord managing more than 15,000 apartments. Pradium provides the financing for his deals. The partners fought unsuccessfully to block the appointment of the receiver, arguing Pinnacle should continue to manage the portfolio of buildings with 1,083 units located on the west side of Manhattan, including Morningside Heights, because it would benefit the tenants. Mr. Weiner also argued that Dune’s predecessor caused him to default by giving him assurances that the loan would be restructured.
Dune recently bought the loan on the portfolio, which had been in default for over a year, and started a foreclosure proceeding early last month. It said in court papers that a receiver was necessary because Mr. Wiener was collecting approximately $10 million in rents, which serve as collateral for the mortgage, that were not being paid to the lenders.