Fordham Landing Developer Files for Chapter 11

Dynamic Star LLC, the owner of Fordham Landing, a major housing development in the Bronx that’s attracted state investment, has filed for Chapter 11 bankruptcy to halt a foreclosure sale, reported Bloomberg News. The filing comes weeks after state officials agreed to commit $55 million to support infrastructure construction in Fordham Landing South, which would include roughly 900 affordable housing units.

Project lenders include an affiliate of commercial real estate firm CREMAC Asset Management LLC, which had initiated a foreclosure sale of the project owner’s equity interests, Bloomberg reported. The developer is facing other lawsuits, including an August complaint from construction manager AECOM Tishman, seeking to recover money it says it’s owed for work on the project.

The development is split into two projects: a larger-scale Fordham Landing North, which will take longer to complete, and Fordham Housing South, which is further along in development. “We’re planning to proceed with the development and still think it’s going to be successful,” Dynamic Star bankruptcy lawyer Kevin Nash told Bloomberg.

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