- Joel Wiener, CEO of Pinnacle Group, has filed Chapter 11 bankruptcy on multiple holding companies representing thousands of NYC rental units amid ongoing foreclosure actions.
- The bankruptcy halts Flagstar Bank’s foreclosure efforts, which began months ago, and involves properties across Manhattan, Brooklyn, Queens, and the Bronx.
- While the holding companies are in bankruptcy, Pinnacle Group and its related affiliates are not included in the filings.
Joel Wiener, one of New York City’s most prolific landlords, has put multiple property holding companies with thousands of residential units into Chapter 11 bankruptcy, reports Bloomberg. The filings come just months after Flagstar Bank began foreclosure proceedings on the assets. The move freezes legal actions and raises questions about the financial health of a major player in the city’s rental market.
A Major Move Under Pressure
The bankruptcy filings were submitted Wednesday in US Bankruptcy Court in the Southern District of New York. Each petition was signed by Wiener, who is the CEO of Pinnacle Group. The filings list estimated assets and liabilities ranging from $500M to $1B.
The properties affected span across Manhattan, Brooklyn, Queens, and the Bronx. Notably, Pinnacle itself—along with affiliated corporate entities—has not filed for bankruptcy, distancing the parent company from the distressed assets.
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Stemming The Foreclosure Tide
The Chapter 11 filings effectively stall state-level foreclosure actions brought by Flagstar Bank, which had initiated proceedings against the properties earlier this year. The law firm Weil, Gotshal & Manges LLP and financial advisor FTI Consulting Inc. are representing the bankrupt entities.
A Portfolio Under Strain
Wiener built his wealth through strategic acquisitions of rent-regulated buildings across New York. He also raised capital internationally, notably issuing shekel-denominated bonds in Israel via Zarasai Group Ltd., a private entity incorporated in the British Virgin Islands. According to court filings, Wiener and his family control Zarasai, which currently has $216M in outstanding bonds. Those bonds have dropped in value, trading at 87 cents on the dollar, reflecting growing investor concern.
Why It Matters
The bankruptcy filings highlight growing financial strain on landlords with large rent-regulated portfolios in the city, particularly as rising interest rates, tighter credit, and regulatory headwinds squeeze margins. While Pinnacle is not itself bankrupt, the move signals potential risk exposure for other landlords with similar structures.
What’s Next
Creditors, including bondholders in Zarasai Group, will be watching closely as the bankruptcy process unfolds. The court case, listed as Broadway Realty I Co. LLC, No. 25-11050, could set precedent for how similar multifamily portfolios navigate financial distress in a high-interest-rate environment.
