Blackstone Pursues Foreclosure At Site Of Planned Bronx Megaproject
The future of Dynamic Star’s Fordham Landing megaproject is in doubt after its lender filed a preforeclosure action, alleging a $55M loan is in default.
The loan is secured by a series of parcels in the Bronx, including 2444 Exterior St., 2371 Exterior St., 2391 Exterior St. and 2401 Exterior St., according to a lawsuit filed in New York State Supreme Court Friday.
The lender behind the suit is a joint venture of Blackstone and Rialto Capital, which took over the loan as part of their 2023 deal to purchase the failed Signature Bank's commercial real estate loan book from the Federal Deposit Insurance Corp.
The Blackstone-Rialto joint venture ramped up foreclosures on the bank’s former borrowers last year. Its suit, filed against affiliates of Dynamic Star and Namdar Realty Group, says the developers defaulted on a $55M loan last year after extending the debt's original August maturity date. The filing was first reported by PincusCo.
The lenders are asking a judge to appoint a receiver to oversee the property as they pursue a forced sale.
“We continue to engage with borrowers to find the best resolutions possible,” a Blackstone spokesperson told Bisnow in a statement.
Namdar CEO Igal Namdar and Dynamic Star co-founder and CEO Gary Segal are named as defendants as they are obligors under the guarantee, according to the suit.
Dynamic Star is planning a 2.7M SF mixed-use development dubbed Fordham Landing North, with retail, office, and market-rate and affordable housing on the lots.
The sites would host the second phase of the $2.5B Fordham Landing megaproject, which is envisioned to overhaul the Harlem Riverfront and add a total of 2,500 apartments to New York City’s housing stock.
Namdar and Gorjian Acquisitions in 2022 reportedly took a roughly 50% equity stake in the project, including both Fordham Landing North and South.
Representatives for Dynamic Star, Namdar and Gorjian didn't immediately respond to Bisnow’s requests for comment.
In October, Dynamic Star told Bisnow that a groundbreaking for Fordham Landing South is expected to take place in the first quarter of 2025, and delivery is planned for early 2027.
But Fordham Landing North requires a rezoning to develop, Crain’s New York Business reported in 2023. The filings spell trouble for the second phase of the project, planned to include more than 1.8M SF of residential, 744K SF of office space and 143K SF of retail, according to Dynamic Star's website.
A scrap metal facility is located at 2371 Exterior St., the address that Dynamic Star lists for Fordham Landing North on its website.
Shortly after Blackstone and Rialto, with backing from the Canada Pension Plan Investment Board, acquired a 20% stake in Signature's $17B CRE loan book, they looked to offload a $1.8B chunk of the portfolio.
