A
prominent figure in Central Massachusetts real estate has filed for bankruptcy, sparking concerns about the future of his properties throughout the region. Chip Norton, founder of Franklin Realty Advisors, filed for Chapter 7 Bankruptcy in late June.

    Norton's portfolio includes several notable buildings: the 20-story Mercantile Center, the Worcester Business Center, and the Southbridge Innovation Center. His bankruptcy filing lists over 150 individuals and organizations he owes money to, including more than $500,000 owed to the Internal Revenue Service.

    Managing Editor Eric Casey of the Worcester Business Journal notes that Norton's personal and professional finances are intertwined due to personal guarantees on business loans related to real estate improvements. This is unusual for entrepreneurs who typically don't have many assets to secure such loans.

    Casey suggests that Norton's financial situation "snowballed out of control" after he mixed his personal and business finances, using properties like the Mercantile Center as collateral for loans. Despite this, the properties themselves appear to be doing well, with high occupancy rates.

    Norton has released a statement highlighting his contributions to the region's growth since 1992, but it doesn't address the ongoing bankruptcy proceedings. Sources indicate that Norton is no longer involved with Franklin Realty Advisors, and remaining investors will likely need to navigate the situation on their own.