Baltimore's real estate market faces challenges as a developer files for bankruptcy.
Brandon Chasen, a prominent Baltimore developer, has filed for Chapter 7 bankruptcy due to overwhelming debt and ongoing legal issues. This decision affects multiple properties and projects under Chasen Cos., highlighting a significant shift in the local real estate market. Various creditors initiated the bankruptcy, citing substantial liabilities. While Chasen has been recognized for revitalizing properties, external pressures and financial missteps led to this crisis. The case raises concerns over the future of his developments and relations with tenants.
BALTIMORE — In a significant development within Baltimore’s real estate scene, developer Brandon Chasen has officially filed for Chapter 7 liquidation bankruptcy. The move comes amidst overwhelming debts, legal scrutiny, and project setbacks that have impacted his once-thriving enterprise.
The bankruptcy petition was formally submitted on June 16 by attorneys representing three creditors: Sandy Spring Bank, Ferguson Enterprises LLC, and Southland Insulators of Maryland Inc. U.S. Bankruptcy Judge Nancy V. Alquist approved the request on Wednesday, allowing the process to move forward. Under the terms of the filing, Chasen will need to disclose details of his assets and liabilities by August 13.
Chasen’s legal representative, Adam Freiman, stated that his client has chosen to proceed voluntarily with the bankruptcy rather than contest it. Freiman emphasized that Chasen’s decision stems from an effort to manage what he described as overwhelming debt and to fulfill obligations to his creditors. The attorney also communicated that Chasen remains committed to eventual debt repayment, despite the financial difficulties.
Once recognized as a prominent entrepreneur revitalizing neglected properties in Baltimore, Chasen has experienced intense external pressures worsening his financial standing. The COVID-19 pandemic, which disrupted supply chains and increased construction costs, severely affected his projects. Elevated interest rates on commercial loans further compounded these challenges, leading to cash flow issues and project delays.
To limit losses, Chasen ceased drawing any salary or benefits once it became evident that his business could no longer sustain ongoing operations. Despite these setbacks, he publicly indicated his intention to approach bankruptcy with dignity and to learn from current experiences for future ventures.
Chasen Cos., once holding approximately 10% of the available multifamily properties in Baltimore’s Fells Point district, had been a significant player in the local housing market. The company had ambitious plans for a $100 million national expansion, which have now been scaled back. The firm has also faced multiple lawsuits from lenders and contractors over unpaid bills and late loan payments.
Several key projects, including the renovation of the old Meyer Seed Co. warehouse and the construction of the One Calvert Plaza skyscraper, have been stalled. Additionally, earlier this year, Chasen’s construction arm, Chasen Construction LLC, filed for Chapter 11 bankruptcy. That entity reported to have no assets and liabilities exceeding $39.5 million.
Chasen Cos. defaulted on a nearly $34 million construction loan for a luxury apartment development. Tensions with Sandy Spring Bank intensified when attempts were made to transfer a Gulfstream G200 jet to a trustee without addressing overdue loan payments, raising questions about financial management.
Financial obligations also include unpaid city water bills and taxes, totaling at least $345,000. The company’s management of tenants has been challenged, with reports of communication problems regarding lease renewals and rent payments, especially at properties managed by Bay Property Management. Chasen owns multiple apartment complexes across Baltimore, Virginia Beach, and Florida.
A U.S. Trustee overseeing the case pointed out that no representative from Chasen Cos. attended a scheduled creditors’ conference call regarding the bankruptcy of Chasen Construction LLC, indicating possible ongoing issues with corporate communication and transparency.
Brandon Chasen’s decision to file for Chapter 7 bankruptcy marks a dramatic turn in his business career, driven by accumulated debts, stalled projects, and mounting legal challenges. While the move aims to facilitate the orderly liquidation of assets and satisfy creditors’ claims, it underscores the difficulties faced by developers amidst economic and operational pressures. As the case progresses, creditors, stakeholders, and industry observers will be watching to see how assets are managed and what lessons may be drawn from this financial upheaval.
News Summary Construction on the Heber Valley Utah Temple has resumed after nearly three years…
News Summary In Tucson, a group of construction workers from Northwest Construction played a crucial…
News Summary A new chapter in Wisconsin Dells is underway with the Dellshire Resort's grand…
News Summary An infant was discovered dead inside a vehicle near Rockwall Heath High School,…
News Summary An unexpected fire forced the evacuation of Lunenburg Middle/High School on the first…
News Summary Students at Parkland High School staged a walkout to protest staffing cuts due…