Foreclosure Intensifies Financial Struggles for a Baltimore Developer

Chasen Cos. is a Baltimore real estate developer that experienced rapid growth after its founding in 2017, acquiring numerous properties in the city. However, it now faces increasing financial difficulties, highlighted by a foreclosure filing on the historic One Calvert Plaza office tower, a 15-story property it acquired in 2022 with plans to convert it into apartments, costing around $11 million.

According to the Baltimore Banner, a major local news outlet, Sandy Spring Bank initiated foreclosure proceedings last week after Chasen defaulted on its $34 million loan. 

Brandon Chasen, the founder and CEO of this real estate developer, had planned to transform One Calvert Plaza with the design of 173 apartments. However, they began missing debt payments, which stopped in June. The following month, Sandy Spring Bank’s lawyers accused Chasen of withholding crucial financial details, all according to the Baltimore Banner.

Additionally, the developer also faced lawsuits from contractors alleging unpaid bills totaling hundreds of thousands of dollars. Among the companies claiming non-payment by Chasen Cos. are Patriot Steel Fabrication, Green Apple Cleaning, and a lighting supplier, owed $915,000, $22,000, and $40,000, respectively. This is in addition to the nearly $200,000 the firm owes the city of Baltimore in overdue water bills on virtually all its properties.

In 2022, Financial Times ranked Chasen as the seventh fastest-growing company in the United States, with revenue generation close to $22 million. 

While the real estate firm continued to grow during the pandemic, the interest rate hikes starting in 2022 seem to have affected Chasen’s financial health, as the rate on its loan with Sandy Spring Bank increased to more than 8%.

Available Foreclosures:

Baltimore: 150 homes available.

By Elias DaSilva | October 17, 2024.