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 Struggles
Baltimore, MD — Developer Brandon Chasen has formally filed for Chapter 7 bankruptcy, initiating a liquidation process due to mounting debt and legal complications. The bankruptcy petition was submitted on June 16 by attorneys representing three key creditors, marking a significant development in the ongoing financial challenges faced by his real estate company.
Key Details of Bankruptcy Filing
The petition was filed by legal representatives on behalf of Sandy Spring Bank, Ferguson Enterprises LLC, and Southland Insulators of Maryland Inc. U.S. Bankruptcy Judge Nancy V. Alquist approved the bankruptcy request on the same week. According to court proceedings, Chasen is required to disclose detailed information about his assets and liabilities by August 13.
Chasen’s legal counsel, Adam Freiman, confirmed that his client would voluntarily proceed with the bankruptcy process rather than contest the filing. Freiman emphasized that the decision was prompted by what he described as “overwhelming debt” and assured that Chasen remains committed to repaying his creditors. The move marks a shift from previous ambitions of expansion to an immediate focus on addressing financial obligations.
Background and Context of Financial Difficulties
Brandon Chasen, once celebrated as a prominent Baltimore-based entrepreneur, gained recognition for revitalizing neglected properties within the city. However, recent years have seen the company encounter severe financial hurdles, compounded by external pressures such as the COVID-19 pandemic and infrastructure issues like the collapse of the Francis Scott Key Bridge. These factors disrupted supply chains and increased costs for construction materials.
Additionally, rising interest rates on commercial loans significantly impaired the company’s ability to refinance and sustain its operations. To minimize losses during this period, Chasen ceased drawing salaries and benefits, attempting to preserve cash flow amid an uncertain market environment.
Legal and Financial Troubles
The company has been embroiled in multiple litigations, facing lawsuits from lenders and contractors over unpaid bills and missed loan payments. Prominent projects such as the old Meyer Seed Co. warehouse and the One Calvert Plaza skyscraper have been stalled due to financial constraints. Earlier this year, Chasen’s construction subsidiary, Chasen Construction LLC, filed for Chapter 11 bankruptcy, reporting assets of zero and liabilities exceeding $39.5 million.
The main company has defaulted on a nearly $34 million construction loan for a luxury apartment development and faced issues with transferring assets such as a Gulfstream G200 jet to a trustee, highlighting strained lender relations. Furthermore, the company is overdue on city water bills and taxes totaling at least $345,000.
Asset Portfolio and Future Plans
Despite setbacks, Chasen still owns several properties, including apartment complexes in Baltimore, Virginia Beach, and Florida. He also once planned a major expansion across the nation, investing approximately $100 million into new projects. However, these plans have been scaled back due to ongoing financial difficulties.
Impact on Tenants and Community
Tenant relations have also been affected, with reports of communication challenges regarding lease renewals and rent payments. Some properties are managed by third-party firms, further complicating landlord-tenant interactions. The company’s financial instability has led to concerns about the management and maintenance of these properties.
Additional Developments and Observations
Several issues have arisen between Chasen and creditors. Notably, there was an attempt by Chasen to transfer a Gulfstream G200 jet to a trustee without addressing existing loan arrears, which strained the relationship with Sandy Spring Bank. A U.S. Trustee pointed out that no representatives from Chasen’s company attended a recent creditors’ conference regarding the Chasen Construction bankruptcy case, signaling ongoing communication gaps.
Conclusion
Brandon Chasen’s decision to declare bankruptcy marks a significant turning point for his business endeavors. The legal process is expected to clarify the extent of his liabilities and outline plans for future resolution. While his past contributions to Baltimore’s real estate scene are acknowledged, his current financial trajectory underscores the challenges faced by developers in complex economic conditions.
Deeper Dive: News & Info About This Topic
HERE Resources
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 MILWAUKEE WRITER
MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee 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 Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
