The Promote Podcast – Episode Summary

Episode Title: Pinnacle's Bankruptcy Summit & Life Sci's Midlife Crisis
Date: January 14, 2026
Hosts: Hiten Samtani (A), Will Krasne (B)
Theme:
A deep dive into three high-stakes stories shaking up commercial real estate: MCR’s failed Soho House take-private, ongoing turmoil and failed bets in the once-hot life sciences sector, and a closely watched bankruptcy auction for New York’s Pinnacle rent-stabilized portfolio.

Episode Overview

This episode brings the insider’s lens to the distress and drama inside three corners of the CRE universe. From Tyler Morse’s MCR defaulting on a major hotel deal to the unraveling of “can’t lose” life science investments, and finally the pivotal bankruptcy of Joel Weiner’s Pinnacle portfolio, the conversation is packed with insight, war stories, and dose of irreverence that’s become the show’s hallmark.

Segment 1: Soho House Take-Private Implosion (00:43–07:07)

Context & Key Players

• Tyler Morse’s MCR: Third-largest select-service hotel operator in the US.
• Deal Structure: MCR and partners (Goldman Sachs Asset Management, Ron Burkle, Ashton Kutcher, Apollo) agreed to privatize Soho House at a $2.7B valuation (including debt).
• Event: MCR failed to produce $200M in equity at closing. The board capped damages at $10M.

Highlights & Insight

• Extinction-Level Event?
  • “At first blush, this is a potentially extinction level event for MCR because they might get sued for specific performance… You can be forced to close. It’s the same thing that happened with Twitter.” (B, 01:31)
  • “This is a public company. Stock plummeted right after this was disclosed in Soho House's filings." (A, 03:36)
• Why Did It Happen?
  • “Why sign the equity commitment letter if damages are capped at 10 million? It doesn’t matter.” (B, 02:55)
• MCR’s Brand Drift
  • “Tyler Morris built his brand and built MCR on select service… The rooms business is the only good business in the hotel business.” (A & B, 03:51–04:14)
  • “Yet they own three enormous New York union hotels… The exact opposite of what they were doing.” (B, 04:39)
• Salvaging the Deal
  • The recap group will likely add more equity and get it done, since Soho House is a controlled company. “They’ll cover this to get it done because again, it’s a controlled company and they’re basically taking it private because they don’t like the stock price.” (B, 05:48)

Notable Quotes

• On legal exposure:

  “It’s almost like, is Tyler stupid – like a fox – where he’s like, I got a $10M option to be in this take private because someone’s lawyer really screwed up and someone’s lawyer did very well.” (B, 06:53)

Industry Fallout

• Reputation risk is huge; fewer will trust MCR after this.
• Comparison to Andrew Chung’s failed tower buy: “This is way worse. Don’t syndicate or like not have the money for a take private... not for a public company.” (B, 06:31)

Segment 2: Life Sciences’ Midlife Crisis (08:23–16:47)

Context & Key Players

• Life science properties: Once pandemic-era darlings, now struggling.
• Beacon Capital’s Headache: Sued by operating partner Portal Innovations for missed capital calls.

Highlights & Insight

• Beacon’s Roots & Recent Pain
  • “Fred Siegel of Beacon Capital Partners: the predecessor was just the Beacon companies... massive Boston-based developer.” (A & B, 09:01)
  • “They’ve had some black eyes in the office market too recently... lawsuits and CMBS workouts.” (A, 09:32)
• The Lawsuit
  • “The office partner sues Beacon basically saying, you guys haven’t funded... and Beacon’s response is, ‘you’re so bad at this, you lost $50 million.’” (B, 10:20)
  • “Beacon is saying that the operating partner charged excessive management fees. My guys, you wrote the JV.” (B, 10:52)
• Industry Pattern
  • Emerging asset classes bring conflicts between traditional landlords and new “middleman” operators – similar disputes forecast for data centers.
  • “So much of the investment management industry is just based on price go up. The actual operations of stuff is so hard.” (B, 11:13)
• Lender Distress
  • Bank OZK offloaded a $265M construction loan at a loss; potential huge default with their $900M loan to IQHQ in San Diego.
  • “If they default on this loan, that’s a pretty massive hole for OZK and that’s going to be a pretty big shock for the life science sector.” (A, 15:35)
• Sector-wide Trouble
  • New projects lack tenants; product doesn’t fit demand for smaller, fitted-out space.
  • “We had office, which was a shitty business, and then we got life science, which is just expensive office.” (B, 15:14)

Notable Quotes

• “Would you say really that this whole sector is clinging to life sciences?” (B, 08:45 – with a groan-worthy pun)

• “If only there was a vaccine for vacancy.” (B, 16:36)

Segment 3: Pinnacle Portfolio Bankruptcy Auction (17:59–30:22)

Context & Key Players

• Pinnacle (Joel Weiner): Once a rent-stabilized billionaire, now in default.
• Portfolio: 5,100 rent-stabilized apartments in NYC; massive distress post-2019 rent reform and rising rates.
• Flagstar (formerly NYCB): Lead lender.
• Summit Properties USA: Out-of-town stalking horse bidder.
• NYC Mayoral Intervention: New mayor (Mumdani) and tenant activist C.A. Weaver take activist stance.

Timeline & Key Points

1. Portfolio Overview (18:55–19:13)
   • “5,100 units of rent stabilized apartments... enormous portfolio. This was easily a couple billion dollars at the peak.” (B)
   • Default on $550M Flagstar loan; total debt over $1B including Israeli bondholders ("Taste").
2. Bankruptcy Process (19:20–21:14)
   • Foreclosure led to Chapter 11 bankruptcy; Eastdil handling auction.
   • “Eastdil... carved out a nice niche in this bankruptcy auction game.” (A, 20:14)
   • Summit Properties USA enters as stalking horse with a $450M bid ($88,000/unit).
3. So Cheap It’s Shocking (22:29–22:47)
   • “That is about $88,000 a unit in NYC. So cheap, it’s so rough, boggers cheap.” (A & B, 22:29)
4. Mayoral Intervention & Rent Law Bind (23:14–25:48)
   • Mayor visits property on inauguration, vows to intervene; city requests stay, court denies.
   • “The city’s argument’s really interesting. They’re saying, basically, if a deal happened at this number... not feasible unless the new buyer did some shenanigans with the rent stabilized units.” (A, 25:28)
5. Feasibility and Future Outlook (25:55–26:23)
   • “You’re not covering debt service.” (B, 26:17)
   • Broader legal debate: “...this admission by the city is basically them validating [the ‘taking’] argument.” (A, 26:44)
6. Insider Connections? (27:08–27:47)
   • Rumors link Summit’s new bid to Joel Weiner’s brother Jonathan, which both deny.
7. Debt Haircut and Precedent (27:49–29:56)
   • "We were told it's $275M less than existing debt stack. I'm assuming that's Flagstar taking a massive, massive write-down." (A, 27:49)
   • “Since 2019, the industry has really been waiting... This feels like a shift.” (B, 28:05)
   • The structural dilemma: no way to service debt or improve units without legal or fiscal overhaul.
8. Possible City Takeover? (29:56–30:08)
   • When asked, tenant advocate laughs off immediate city takeover, “It’s too soon to say.”

Notable Quotes

• “It’s the USA that makes you know that they’re legit.” (B, 21:40)

• “If you have to ask...” (B, 27:47 re: the Summit–Weiner possible family tie)

• “To bet on the sector now is to essentially say, I’m going to ride out this administration or they’re going to come to Jesus on this topic.” (A, 28:50)

• “They have a little more wiggle room than Pinnacle did, but... they’re not going to spend $200 million fixing everything. They just can’t.” (B, 29:32)

Timestamps for Major Segments

• Soho House/MCR Fumble: 00:43–07:07
• Life Sciences Crisis: 08:23–16:47
• Pinnacle Bankruptcy: 17:59–30:22

Memorable Moments & Quotes

• On MCR's shift from “shitting cash machines” in select service hotels to headline exotics:

  “You build your business on something, but you want to build your legacy on something maybe a little sexier...” (A, 05:16)

• On life science sector's collapse:

  “A friend of the pod who's listening said, ‘we had office, which was a shitty business, and then we got life science, which is just expensive office.’” (B, 15:14)

• On the rent law bind:

  “The numbers given the current rent stabilized rents in place, simply cannot pencil.” (A, 24:57)

• On regulatory optimism:

  “...all you do is lose political capital. And if you show weakness here, people are just gonna come after you, come after you, come after you.” (B, 29:11)

Closing Thoughts

The hosts end with a succinct note: the deals, disputes, and shakeups in CRE are coming faster and heavier, with the fate of not just a few players, but entire sectors at stake. Distress is now center stage, and the consequences—legal, financial, and political—are just beginning.

“This is going to be a big year in CRE. I’m excited to see what we get to cover. I wake up every day looking eyes bright, what’s new in the news. And it just keeps coming.” (B, 30:52)

For more CRE deep dives and future episodes, subscribe to The Promote Podcast and check out their newsletter at thepromote.com.