Weil represented Broadway Realty I Co., LLC and affiliated debtors (the Debtors), which held a real property portfolio of 93 properties and approximately 5,200 rent-stabilized units across four boroughs of New York City, in their chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of New York. Each of the Debtors were managed by the non-debtor management company Pinnacle Managing Co. LLC. The sale represents one of the largest transfers of rent-regulated units in the City’s history.

On March 31, 2026, the Debtors’ chapter 11 plan became effective, implementing a $451.3 million sale of the entire real property portfolio to buyer Summit Gold Inc. In his written order confirming the Debtors’ chapter 11 plan, U.S. Bankruptcy Judge David S. Jones referred to the Debtors as “a major and systemically important provider of affordable housing,” and noted that the insolvency professionals involved in the case, including Weil, were “exceptionally skilled at making the best of a challenging situation.”

The Debtors commenced their chapter 11 cases on May 21, 2025, following foreclosure proceedings initiated by mortgage lender Flagstar Bank, N.A. seeking receivership over the Debtor properties. At the time of the filing, the Debtors held approximately $564 million of principal aggregate mortgage debt.

Following a months-long marketing process with outreach to thousands of potential purchasers, the Debtors proceeded with an auction on January 8, 2026. At the auction, the debtors determined that the bid for the entire portfolio placed by Summit was the highest or best offer received.

After an all-day confirmation hearing, including extensive witness testimony and oral argument, the Court issued an oral ruling on January 16 confirming the Debtors’ chapter 11 plan and approving the Summit sale. In addition to objections raised by the City of New York, the Weil team overcame challenges to the sale brought by various tenant groups and the United States Trustee. 

The Weil team is led by Restructuring partners Gary Holtzer, Garrett Fail and Matthew Goren and includes Restructuring associates Phil DiDonato, Jillian Ingrisano, Molly Newcomb, Abe Rosen and Ellie Greenberger (Not Yet Admitted in New York); Real Estate Co-Head Thomas Henry and associate Ilana Bier; Mergers & Acquisitions partner Gavin Westerman and associate Dorothy Coco; and Complex Commercial Litigation partner Jared Friedmann and counsel Christine Calabrese.