Baltimore Developer Files for Bankruptcy Amid Financial Woes

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 Troubles and Legal Challenges

Baltimore, MD — Brandon Chasen, a prominent local real estate developer, has officially filed for Chapter 7 bankruptcy, signaling the end of his company’s pursuit of ongoing projects due to significant financial distress. The bankruptcy petition was submitted on June 16 by legal representatives of three creditors and received approval from a federal bankruptcy judge late Wednesday.

Details of Bankruptcy Filing and Court Ruling

The bankruptcy petition was filed by attorneys representing Sandy Spring Bank, Ferguson Enterprises LLC, and Southland Insulators of Maryland Inc. U.S. Bankruptcy Judge Nancy V. Alquist approved the request, paving the way for the liquidation of Chasen’s assets under Chapter 7 provisions. Chasen’s legal counsel has indicated his client will voluntarily proceed with the proceedings, not contesting the filing. Chasen is required to submit detailed information about his assets and liabilities by August 13.

Reasons Behind the Decision

The decision to declare bankruptcy was driven by what attorney Adam Freiman described as “overwhelming debt”. Despite the financial setbacks, Freiman emphasized that Chasen remains committed to fulfilling his obligations to creditors and hopes to navigate the process with dignity. The outcome reflects the collapse of Chasen’s once-expanding real estate enterprise, which has faced mounting external pressures over recent years.

Impact of External Pressures and Business Challenges

Chasen’s company, Chasen Cos., had been recognized for revitalizing neglected properties within Baltimore city, including notable projects in the Fells Point neighborhood. However, the firm faced significant setbacks caused by external factors. The COVID-19 pandemic disrupted supply chains and increased costs of construction materials, while the collapse of the Francis Scott Key Bridge added logistical hurdles. Rising interest rates on commercial loans further strained the company’s finances, precipitating the current insolvency scenario.

In response to mounting losses, Chasen ceased drawing any salary or benefits, aiming to reduce cash outflows and mitigate further losses. Nonetheless, financial pressures persisted, prompting the company to seek bankruptcy protection.

Financial Troubles and Lawsuits

The company’s decline is also marked by legal and financial disputes. Chasen Cos. has been involved in several lawsuits filed by lenders and contractors over unpaid dues and late loan payments. Notably, the company defaulted on a nearly $34 million construction loan linked to a luxury apartment project. Additionally, multiple projects have been stalled, including the historic Meyer Seed Co. warehouse and One Calvert Plaza.

Chasen Construction LLC, the firm’s construction arm, filed for Chapter 11 bankruptcy earlier this year, revealing assets at zero and liabilities exceeding $39.5 million. The parent company also defaulted on multiple debts, including a significant loan on a residential development.

Property and Asset Management Issues

Another concern involves ongoing financial obligations. Chasen’s firm is behind on city water bills and taxes, totaling at least $345,000. In addition, there have been tensions with lenders over attempts to transfer assets such as a Gulfstream G200 jet—actions that regulators or creditors viewed as attempts to hide assets to avoid repayment.

Despite the company’s financial decline, some tenant reports indicate ongoing issues with communication regarding lease and rent arrangements, with property management handled by third-party firms like Bay Property Management. Chasen owns residential complexes in Baltimore, as well as properties in Virginia Beach and Florida.

Future Outlook and Broader Implications

Officials from the U.S. Trustee’s office noted the lack of participation from Chasen or company representatives during a scheduled creditors’ conference call, highlighting further challenges in managing the bankruptcy process. As the case advances, creditors and stakeholders await the liquidation of company’s remaining assets and resolution of outstanding debts.

Once a key figure in Baltimore’s real estate scene, Brandon Chasen’s bankruptcy marks a significant turning point for the developer, whose efforts to expand nationally—including an ambitious $100 million plan—have been curtailed as debts and legal hurdles take center stage. The resolution of the bankruptcy process will determine the future of his remaining properties and the extent of financial recovery for his creditors.

Background Context

Brandon Chasen gained recognition for revitalizing diverse properties and was once considered a significant contributor to Baltimore’s housing development. Nevertheless, recent years have seen economic shifts, regulatory issues, and internal financial strains significantly weaken his business operations. The bankruptcy aligns with broader industry challenges, including supply chain disruptions, rising interest rates, and increased borrowing costs, that have affected many real estate firms nationwide.

Deeper Dive: News & Info About This Topic

HERE Resources

Developer Sentenced for COVID-19 Relief Fraud and Money Laundering
Major Legal Developments in Mesothelioma Litigation

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