Baltimore and Charles Associates, LLC, the owner of Baltimore’s famous B&O Building, has recently filed for Chapter 11 bankruptcy—on the heels of converting the property to a Hotel Monaco. The bankruptcy protection was sought just a day prior to Baltimore and Charles were to appear in court over contractors looking to receive their $630,000 in fees for working on the hotel.
Baltimore and Charles Associates owns the building itself, yet, not the hotel. Their largest secured creditors, Capmark Bank and National Penn Bank, together, loaned a combined $59 million, which the developer now owes and is in process of restructuring. The Hotel Monaco, meanwhile, is owned by Kimpton Hotels & Restaurants of San Francisco.
Roughly $60 million was used in renovations to convert the B&O Building into a 200+ room hotel. Through the recent filing, Baltimore and Charles Associates will be able to renegotiate the terms of all of its debt, sans looming threats of foreclosure and/or penalties. Baltimore and Charles chose Chapter 11 rather than opting for Chapter 7, whereby they would have to sell its property in order to repay its large debt.
The B&O Building has been a mainstay on Baltimore’s historical Charles Street for many years and was once the headquarters for the B&O Railroad Company. According to the Historic Charles Street Association, the street is “one of the oldest thoroughfares in America, has roots that predate Baltimore itself. Before Europeans settled around the Chesapeake Bay, it is speculated that a Susquehannock Indian trail ran along what is now part of Charles Street.”