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Baltimore real estate firm's construction arm has been forced into bankruptcy by a judge, marking the latest blow to Chasen Cos.'s struggling business. U.S. Bankruptcy Judge Nancy V. Alquist granted an involuntary Chapter 11 petition filed by Sandy Spring Bank and two other creditors, citing Chasen Construction LLC's failure to respond to the legal action.

    The move comes as Chasen Cos. faces a perfect storm of challenges in the real estate market, including rising mortgage interest rates and soaring operating costs. The company had previously scaled back plans for national expansion, which was once touted as a $100 million effort. Instead, it now focuses on its existing portfolio of around 2,000 housing units across Maryland, Virginia, and Florida.

    The bankruptcy filing is the latest in a string of legal woes for Chasen Cos., including allegations from vendors that they were stiffed on payments. Several high-profile projects have stalled or hit the market, including the redevelopment of the historic Meyer Seed Co. warehouse. Despite initial denials that the issues were serious, the company has gone quiet as cases mounted in size and volume last fall.

    The bankruptcy trustee appointed by Alquist will oversee the case, which is expected to unfold with caution given Chasen Construction's lack of response to the petition. The move marks a significant setback for Chasen Cos., which had been expanding rapidly until recently.