Dive Brief:
- Sandy Spring Bank filed for foreclosure in September on Chasen Cos.’ One Calvert Plaza office tower in Baltimore after the developer went into default on a $34 million loan in June, according to the Baltimore Banner.
- The developer bought the historic 15-story building for $11.1 million in 2022 with plans to convert it into 173 apartment units, according to Bisnow. Chasen did not respond to Multifamily Dive’s request for comment.
- The Banner reported that multiple suppliers, including Patriot Steel Fabrication, a plumbing company, the city of Baltimore and a lighting firm, allege that Chasen owes them money. Additionally, Green Apple Cleaning won a court ruling in July after claiming the developer owed it $22,000.
Dive Insight:
Chasen, founded in 2017, built a business model by buying old warehouse, retail and office properties in Baltimore, gutting them and turning them into luxury apartments.
By 2021 and 2022, Chasen’s growth skyrocketed as it doubled in size to 609 units under development, becoming the No. 7 fastest-growing firm in the country, according to the Financial Times.
“Our bread and butter during the pandemic was acquiring class B assets at the lowest point that we’ve seen in the last 10 years,” CEO Brandon Chasen told Multifamily Dive in 2022. “They all struggled with collections for the first time. So all those owners that have had buildings for 20 or 30 years were ready to sell. They had already made their money and wanted to get out.”
Chasen’s projects include the single-story Meyer Seed building near the Harbor East and historic Fells Point neighborhoods, which it planned to turn into The Whitney, a new five-story luxury apartment complex. However, the Banner reported that Patriot Steel Fabrication petitioned a judge to enter a mechanic’s lien, which halted construction.
Chasen was also revamping a century-old, one-story warehouse in Fells Point to build a new four-story luxury apartment complex called The Chelsea.
While the prices of commercial buildings have fallen since the pandemic, Chasen pointed to other obstacles in apartment conversions at the time.
“We may have some limitations on how we are able to use windows from zoning and fire-safety perspectives,” Chasen said. “You have to reconfigure existing stairwells or elevators — the infrastructure set up for office use versus residential tenant use.”
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