News Summary
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 Developer Brandon Chasen Files for Bankruptcy Amid Financial Crisis and Legal Challenges
Baltimore, MD — Brandon Chasen, a prominent real estate developer in Baltimore, has officially filed for Chapter 7 bankruptcy, signaling a significant financial downturn for the company and a series of ongoing legal and debt-related issues. The bankruptcy petition was filed on June 16 by legal representatives of three creditors, including Sandy Spring Bank, Ferguson Enterprises LLC, and Southland Insulators of Maryland Inc., marking a major turning point for Chasen’s business ventures.
Details of the Bankruptcy Filing and Court Approval
The formal bankruptcy petition was accepted by U.S. Bankruptcy Judge Nancy V. Alquist on the same day, leading to the immediate commencement of the liquidation process. Under Chapter 7 bankruptcy, the company’s assets are to be sold off to satisfy outstanding debts. Brandon Chasen’s legal team, represented by attorney Adam Freiman, confirmed that Chasen would voluntarily proceed with the filing, opting not to contest the proceedings.
Chasen is now required to submit comprehensive information about his assets and liabilities by August 13. This step is part of the court’s oversight, intended to facilitate the orderly distribution of remaining assets among creditors. The move comes amid severe financial difficulties, with Chasen expressing a commitment to repay creditors despite the challenging circumstances.
Background of Financial Troubles and External Pressures
The financial decline of Chasen’s company can be largely traced to external pressures and operational setbacks. The COVID-19 pandemic severely impacted the real estate and construction sectors, disrupting supply chains and increasing the cost of building materials. Additionally, the collapse of the Francis Scott Key Bridge further compounded these difficulties, raising project costs and delaying development timelines.
Rising interest rates on commercial loans also played a major role in the company’s financial deterioration, leading to increased repayment burdens and debt accumulation. In response, Chasen opted to cease taking any salary or benefits to minimize further financial drain on the business.
Legal and Financial Challenges Faced by the Developer
In addition to the bankruptcy filing, Chasen’s company has dealt with numerous lawsuits from lenders and contractors over unpaid bills and loan defaults. Notably, Chasen Cos. defaulted on a nearly $34 million construction loan for a luxury apartment project. Several high-profile projects, including an old warehouse in Fells Point and a downtown skyscraper known as One Calvert Plaza, have stalled or been put on hold due to these financial issues.
Chasen Cos. also faced significant challenges with its construction arm, Chasen Construction LLC, which filed for Chapter 11 bankruptcy earlier this year. Chasen Construction reported having no assets and over $39.5 million in liabilities, marking a stark financial reality. The company’s inability to meet financial obligations led to legal disputes and enforcement actions from lenders.
Controversies and Asset Management Issues
Several controversies have surrounded Chasen’s business practices, including allegations of mismanagement which were widely circulated but have not been substantiated. Tensions also arose between Chasen Cos. and Sandy Spring Bank after the company attempted to transfer a Gulfstream G200 jet to a trustee without addressing existing loan arrears, further complicating the legal landscape.
Financial misconduct allegations related to unpaid taxes and utility bills have also emerged. Chasen Cos. owes at least $345,000 in city water bills and taxes, adding to the mounting financial burdens. The company reportedly failed to notify creditors of bankruptcy proceedings, as indicated by the absence of a company representative at a recent creditors’ conference regarding Chasen Construction’s case.
Impact on Properties and Business Operations
Chasen’s assets include numerous property holdings, such as apartment complexes in Baltimore, Virginia Beach, and Florida. Tenant relationships have reportedly been strained, with issues related to lease renewals and rent payments. Some properties are managed by third-party firms, and tenant concerns include communication challenges and uncertainty about lease terms.
Future Outlook and Industry Impact
The bankruptcy marks a significant development in Baltimore’s real estate scene, especially given Chasen’s past prominence as an entrepreneur revitalizing neglected properties and managing a considerable portion of the city’s multifamily units. Once planning a $100 million national expansion, the scale-back of these initiatives reflects the severity of current financial constraints.
As the liquidation process proceeds, stakeholders and creditors will evaluate claims and assets, with the future of several ongoing projects now uncertain. The case serves as a cautionary tale about the risks associated with rapid expansion amid economic uncertainties and rising loan costs, and it highlights the complexities faced by developers navigating financial distress in a challenging market environment.
Deeper Dive: News & Info About This Topic
HERE Resources
New York City Pioneers Real Estate Tokenization Trends
Additional Resources
- The Baltimore Banner: Brandon Chasen Bankruptcy
- Baltimore Sun: Brandon Chasen Companies Bankruptcy
- MSN: Firms file to push Baltimore developer Brandon Chasen into bankruptcy
- Wikipedia: Bankruptcy
- Encyclopedia Britannica: Bankruptcy
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
