Brad Zackson’s firm filed an eleventh-hour bankruptcy to halt a foreclosure on a highly ambitious Bronx megaproject.
Zackson put his company, Dynamic Star, and three affiliates’ controlling equity stakes in Fordham Landing into Chapter 11 bankruptcy protection in White Plains on December 1. The move stopped a foreclosure auction scheduled for December 2.
The bankruptcies add to the intrigue of Fordham Landing, a multi-billion-dollar mixed-use project along the Harlem River. The ground-up development had an odd cast of partners and was spearheaded by Gary Segal and Brad Zackson, a protege of Fred Trump and a past business associate of Paul Manafort.
Bloomberg first reported on Dynamic Star’s bankruptcy filing.
In recent months, Dynamic Star’s lender initiated foreclosures on the two parts of Fordham Landing. A mysterious lender with ties to Brooklyn-based CREMAC Asset Management alleged Dynamic Star had fallen behind on a $55 million loan and a $18.9 million loan, according to a notice for the foreclosure auction.
Dynamic Star could lose equity interests in both phases of the development if the foreclosure goes through.
In Fordham Landing’s north phase of the project, the developers planned to build 2.7 million square feet of new development with 1.8 million market and affordable housing, 744,000 square feet of office, and 143,000 square feet of retail. In the south phase, they planned to build over 900 units of affordable housing.
Dynamic Star’s larger north phase has a longer-term projection and Zackson said the development team has spent the past few years obtaining zoning approvals. In a bankruptcy filing, Zackson said once the zoning is approved, the developers are confident they will be able to bring in a new investor group to complete the project.
Meanwhile, the 900 units of affordable housing in the south phase were expected to be delivered by next year, according to Zackson. The developers had recently secured over $55 million from the state to assist with site infrastructure.
Zackson said in a bankruptcy filing that the changes and modifications in the project limited the debtor’s financing options.
But in another lawsuit, Dynamic Star’s co-founder Segal blamed one of Fordham Landing’s partners for some of its issues. Segal alleges Great Neck-based developer Igal Namdar was the actual buyer of its loans and attempted to foreclose to take control of the project.
In the bankruptcy filing, Zackson alleges Namdar may be the owner of the mezzanine loans. He further alleged Namdar failed to show up for an emergency meeting to discuss the bankruptcy.
Namdar did not return a request to comment. Dynamic Star’s bankruptcy attorney, Kevin Nash, also did not return a request to comment.
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