Dive Brief:
- A limited liability company controlled by Philadelphia-based PMC Property Group has defaulted on a $16.4 million loan to renovate a building at 301 N. Charles St., according to The Baltimore Banner. The 11-story building was once home to the Baltimore Life Insurance Co.
- PMC bought the building in 2012 for $3.4 million. It borrowed $16.4 million in 2014 to renovate the property, according to The Baltimore Banner. The Baltimore Business Journal reports that the renovation created 92 units.
- The 10-year loan, still owned by Fannie Mae, came due last fall, before the servicer foreclosed in December, according to The Baltimore Banner. PMC still owed $13 million on the principal of the loan as of March.
Dive Insight:
PMC isn’t the only office-to-residential firm to face issues with downtown Baltimore projects.
In March, CC 1400 Aliceanna Street LLC, an entity of Chasen Cos., filed for Chapter 11 reorganization bankruptcy in U.S. bankruptcy court in Maryland, according to The Baltimore Banner. The Baltimore-based firm planned to convert the building in the Fells Point neighborhood into a building with roughly 100 apartments and retail space called The Anne on Aliceanna. It was to be auctioned off, but the auction was canceled, according to Atlantic Auctions.
First National Bank of Pennsylvania had moved to foreclose on the property in 2024 after it said Chasen had defaulted on a more than $28 million loan. The project has as many as 49 creditors and assets and liabilities ranging from about $10 million to $50 million, the paper reported.
In addition, Chasen Cos.’ One Calvert Plaza office tower conversion to apartments went into default on a $34 million loan for the building in June 2024.
The property is being marketed for sale by Lanham, Maryland-based commercial real estate services firm NAI Michael, with the conversion about 70% complete, according to a sales brochure shared with Multifamily Dive.
PMC, which owns 13 buildings in Baltimore, has a track record of office-to-residential conversions outside of Maryland.
In 2021, the firm purchased the historic Wachovia Building in downtown Winston-Salem, North Carolina, which is now the Eight West Third apartments, according to the Winston-Salem Journal. Previously, it had converted the former headquarters of R.J. Reynolds Tobacco Co. to a multifamily residential building in the city.
In 2000, PMC purchased the 19-story Allegheny Building in Pittsburgh, converting it into the Allegheny Apartments, according to The Pittsburgh Post Gazette.
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