New York real estate has never been known for being calm, but one situation involving Freakier Friday star Lindsay Lohan’s brother, Michael Lohan Jr., has stirred up an even bigger storm than usual. The story has all the ingredients of a classic city scandal. Big buildings, bigger rents, and an even bigger.
At first glance, it sounds like just another real estate dispute in the jungle that is New York. But as details come out, the situation looks far less like a misunderstanding and far more like a calculated plan.
According to the lawsuit, Michael Lohan Jr and several real estate players are tied to Peak Capital Advisors. The company is said to have allegedly spent the past few years. Buying up buildings across Brooklyn and Queens and using them in a scheme to deregulate rent-stabilized units.
Allegations Unfold Against Michael Lohan Jr.
These weren’t random properties. According to Page Six reports, they specifically targeted coveted, rapidly gentrifying neighborhoods like Greenpoint, Williamsburg, Sunnyside, and Astoria.
The main goal was to allegedly push out long-term tenants in stabilized apartments. Next, slap on some renovations, and then relist the units as shiny luxury lofts for young professionals with hefty budgets. In some cases, asking prices reached up to $6,500 a month.
The suit claims Peak converted 159 rent-stabilized units to market rate, despite laws that prevent deregulation unless a building is in seriously deteriorated shape. These buildings, however, were reportedly in average or good condition when purchased. Ultimatley, meaning they didn’t qualify for the loophole Peak allegedly relied on.
Still, the renovations moved forward, and once complete. The company is accused of making things murkier by reassigning apartment numbers, making it harder to track legal rent histories. Listings soon began appearing online. Units that were previously around $1,100 or $1,300 a month were suddenly advertised for thousands more. None of them, according to the lawsuit, disclosed that the apartments were still rent-stabilized.
Fans Say “Like Father, Like Son”
As Michael Lohan Jr.’s name started trending, some fans pointed out the elephant in the room. The Lohan legacy of messy headlines. Fair or not, people can’t help drawing comparisons to Michael Lohan Sr., who has been tied to multiple past scandals. Everything from financial disputes to schemes that made tabloid rounds for years. With that history floating around, fans are unsurprised to see eyebrows raised.
“Proves that the apple doesn’t fall far from the tree!!!” one commenter writes.
“Like his father,” another adds.
Beyond the family name, the case underscores how fragile tenant protections can feel in New York. When a company allegedly manipulates housing laws to remove rent stabilization, it doesn’t just create an expensive apartment.
It pushes real people out of their communities and fuels the city’s ongoing affordability crisis. The lawsuit, filed by the Attorney General’s Office and the state’s housing agency, aims to recoup overcharged rent and seek damages for tenants who were caught in the middle.
The state argues that Peak ignored the law entirely. Renovating not because buildings require major rehabilitation, but simply to hike rent prices. One building in Greenpoint even hit the market with absurdly inflated rents compared to what tenants were legally supposed to pay. The numbers weren’t just off. They were galaxies away from reality.
With New York housing already stretched thin, the allegations against Michael Lohan Jr. have struck a nerve. Lindsay Lohan’s brother now faces a high-stakes legal battle that could cost millions. Whether intentional or not, the situation has revived comparisons to his father’s history of questionable ventures. As the case moves forward, New York residents are watching closely, and they’re not exactly cheering for the landlord.
Sofia Bassett 
Kenna Raye 
