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Bronx Housing Project Files Bankruptcy to Halt Foreclosure
5 Dec
Summary
- Dynamic Star LLC filed for Chapter 11 bankruptcy in New York.
- The filing aims to stop a foreclosure sale initiated by project lenders.
- The development includes plans for thousands of affordable housing units.
A significant Bronx housing development, Fordham Landing, is now facing uncertainty after its owner, Dynamic Star LLC, filed for Chapter 11 bankruptcy on December 1st. This legal maneuver was initiated to halt a foreclosure sale orchestrated by project lenders, including an affiliate of CREMAC Asset Management LLC.
The Fordham Landing project, which encompasses thousands of planned affordable housing units across its North and South phases, had recently garnered a $55 million commitment from state officials for infrastructure development. However, the bankruptcy filing pauses any immediate foreclosure actions, preserving the project's value while Dynamic Star works towards its ambitious housing goals.
Dynamic Star co-founder Brad Zackson expressed confidence in proceeding with the development, citing a need for affordability in New York City. The company is pursuing zoning approvals for Fordham Landing North and aims to attract new investors. City officials are aware of the filing and anticipate an update from the development team, reiterating their commitment to delivering much-needed affordable homes.
