Summit Properties USA, a unit of Summit Actual Property Holdings (TASE: SMT), which is managed by Zohar Levy (48%), introduced yesterday that it had gained an public sale for the acquisition of a portfolio of properties in New York from The Zarasai, a unit of US actual property firm Pinnacle Group, for $451 million. This was regardless of the makes an attempt of New York mayor Zohran Mamdani to carry again completion of the public sale.
The portfolio purchased by Summit Properties USA consists of 5,100 housing models in 93 buildings in numerous elements of New York, principally Manhattan, Queens, and Brooklyn. The properties had been put up on the market after the proprietor, The Zarasai, which has bonds listed on the Tel Aviv Inventory Alternate, failed final 12 months to satisfy the phrases of loans from US financial institution Flagstar, which demanded speedy reimbursement.
Final September, the events agreed to a settlement underneath which whereby the properties could be bought, and final month the corporate determined that the bid by Summit to purchase the property portfolio could be a “main bid” within the public public sale course of. On the similar time, Summit reached understandings with Flagstar, which undertook to supply it with the finance to finish the deal.
At that stage, Mamdani, who had simply turn out to be mayor, entered the image. He had run on a platform of larger availability of inexpensive, rent-controlled housing in New York. He tried to intervene within the public sale, on the grounds that the municipality wanted extra time to look at it. In its submitting within the chapter court docket, the municipality claimed that Summit didn’t have the wherewithal to finish the deal and enhance circumstances within the buildings.
Mamdani even made a well-publicized tour of one among The Zarasai’s buildings in Brooklyn, throughout which tenants confirmed him the issues from which they suffered, which the mayor described as circumstances that no New Yorker ought to must dwell underneath. On the finish of final week, nevertheless, the court docket dismissed the movement, paving the way in which for Summit’s win within the public sale.
The Zarasai is one among a bunch of veteran firms in rent-stabilized properties in New York. Its portfolio is valued at $1.7 billion. It first made a bond providing in Tel Aviv in 2013, initially of a wave of US actual property firms that raised comparatively low cost finance on the Tel Aviv Stok Alternate. The Zarasai’s debt on the bonds issued in Tel Aviv is at present about NIS 1.2 billion, principally unsecured.
Final 12 months, the corporate introduced that it was ceasing to pay curiosity to its senior lender, US financial institution Flagstar, which initiated proceedings to foreclose on the properties.
Consequently, the costs of The Zarasai’s bonds plummeted, and they’re traded at junk yields to maturity of 195% and 560%, reflecting fears that the corporate won’t be able to repay them, a state of affairs that has not modified because the report of Summit’s win within the public sale, because the properties involved don’t have any direct connection to the bondholders.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on January 13, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
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