Major NYC Landlord Blames Bankruptcy On High Interest Rates

A portfolio of rent-stabilized New York City apartments owned by Joel Wiener was pushed into bankruptcy by “sky-rocketed” interest rates and changes to state housing law that restricted the property owners’ ability to increase rent on tenants, according to court papers.

Dozens of properties managed by Wiener’s Pinnacle Group were put into Chapter 11 last week, saddled with roughly $564 million in mortgage debt and facing foreclosure actions from its primary lender, Flagstar Bank. The apartments also have outstanding amounts on Israeli-issued bonds, pushing the total debt on the properties to roughly $1 billion, according to bankruptcy papers filed Tuesday. ...