Owner of NYC’s Fordham Landing Housing Project Files Bankruptcy
(Bloomberg) — The owner of Fordham Landing, a landmark housing project in the Bronx that has attracted government investment, has filed for bankruptcy to stop a foreclosure sale.
Dynamic Star LLC and related corporate entities that own a stake in the Fordham Landing project filed for Chapter 11 in New York on December 1. The application comes weeks after state officials agreed to commit $55 million to support infrastructure construction at Fordham Landing South that will include about 900 affordable housing units.
The project is split into two projects, the larger-scale Fordham Landing North, which will take longer to complete, and Fordham Housing South, which is further along in development, according to court documents. The combined project along the Harlem River includes the construction of thousands of affordable units.
Lenders to the project include an affiliate of commercial real estate company CREMAC Asset Management LLC, which initiated the foreclosure sale of the project owner’s equity shares, Zackson said. The developer faces other lawsuits, including a complaint filed in August by AECOM Tishman, the contractor and construction manager for the Fordham South project, seeking to recover money it says it is owed for work on the project.
New York has not provided funding for the project and will complete due diligence before any state funds are released, said a person familiar with the matter who was not authorized to discuss those details.
Dynamic Star is working with housing experts to build affordable units in 2026, co-founder Brad Zackson said in a court filing. The company has spent the past two years seeking zoning approval for 4,000 affordable housing units planned for Fordham Landing North, Zackson said.
A spokesperson said the New York City Department of Housing Preservation and Development “is aware of the bankruptcy filing and we look forward to receiving an update from the development team later this week.” “We hope to build housing in this area and provide New Yorkers with much-needed affordable housing.”
Dynamic Star bankruptcy attorney Kevin Nash said Thursday that the Chapter 11 filing pauses foreclosure action and preserves the value of the project.
“We plan to continue development and still think it will be successful,” Nash said.
The company’s current plan is to develop thousands of affordable housing units “which is absolutely consistent with the current political climate in the state and city and highlights the need for affordability,” Zackson said in the court filing.
Dynamic Star said it is confident that once the rezoning plan for Fordham Landing North is approved, it will be able to attract new investors and construction partners to take on the larger-scale project.
Plans to make New York City more affordable for residents were at the center of Mayor-elect Zohran Mamdani’s speech to voters; This included a commitment to freeze rent on the city’s rent-stabilized apartment stock.
The case is Dynamic Star LLC, case number 25-23154, in the U.S. Bankruptcy Court for the Southern District of New York.
–With help from Max Rivera.
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