According to public federal court records, Dynamic Star LLC, the developer behind the billion-dollar housing project, Fordham Landing Development, planned along the Harlem River in the University Heights section of The Bronx, has voluntarily filed for Chapter 11 bankruptcy.

 

Chapter 11 bankruptcy is a form of financial reorganization that allows businesses and, in some cases, individuals with significant debt to restructure their obligations and continue operating under court supervision. Extracts from the public filings are attached, including an exit strategy.

The bankruptcy filing by Dynamic Star, one of the debtors, along with Fordham Landing Preferred LLC and Fordham Landing Preferred Sponsor LLC, is one for non-individuals and was made on Dec. 1 in the Southern District of New York, White Plains division.

 

Dynamic Star is a corporation with an address in Westchester County, and according to public records, no bankruptcy cases have been filed for or against it in the last 8 years.

However, in response to the separate question “Are any bankruptcy cases pending or being filed by a business partner or an affiliate of the debtor?” the response provided in the completed documentation was, “Yes,” in April 2024 and the affiliate was named as “BB 23 Hollow Ridge Road LLC.”

 

In response to the question, “Does the debtor own or have possession of any real property or personal property that needs immediate attention?” the answer provided was “No.”

 

As reported, New York Gov. Kathy Hochul joined various elected officials on Oct. 21 to announce a $55 million Empire State Development (ESD) investment to advance Fordham Landing South, Phase I of what has been described as a transformative, 100 percent affordable Fordham Landing Development housing project.

 

New York City Mayor Eric Adams and several City officials and elected leaders announced the first phase of the project in August. 

“Across New York, we are taking bold action to tackle the housing crisis and make our state more affordable for everyone,” Hochul said in part in October.

 

“Projects like Fordham Landing South are what progress looks like, government at every level coming together to turn vacant or underused land into vibrant communities with affordable homes, jobs and public space,” she added. “I’m proud that New York State is investing in the Bronx and building a stronger, more inclusive future for all New Yorkers.”

Dynamic Star, LLC, the developer behind the project, had given an update on the three-acre site to Bronx Community Board 7 (CB7) members on Feb. 11 at their monthly land use committee meeting.

 

Meanwhile, Hochul’s office said the promised State funds of $55 million, as reported, would support essential site infrastructure, including site acquisition, planning and design, infrastructure construction, and other costs, to unlock a mixed-use, transit-oriented development that will bring new affordable homes, jobs, and public space to the Bronx Harlem River waterfront.

 

State officials said Fordham Landing South was to create more than 900 new affordable homes. They said the project would also transform an underutilized stretch of the Harlem River located at by University Heights Bridge and Fordham Road into a vibrant, connected neighborhood featuring a charter school, grocery store, underground parking, three acres of public waterfront, and improved access to Metro-North service. Read more here.

 

Norwood News reached out to Brad Zachson, co-founder and director of development at Dynamic Star LLC, on Dec. 8, as well as to the corporation’s attorney, the U.S. Department of Justice (DOJ), which is the appointment trustee in the case according to court records, City Hall, and Empire State Development for comment on the bankruptcy case, as well as on the current status of the Fordham Landing Development Project, and the $55 million in funding by New York State to advance it. We will share any feedback we receive.

 

ESD responded saying the State was aware of the bankruptcy filing, confirmed the $55 million in promised funding had not been dispersed, and added it will complete all due diligence before releasing any funds. City Hall referred us to HPD. The DOJ had no comment.