Baltimore County developer Norman Rockwell, a partner in the $90 million Lighthouse Point condominium complex in Canton, appears to be the latest local builder to run into financial problems related to his real estate holdings.
Maryland National Bank has initiated foreclosure proceedings against two partnerships that Mr. Rockwell heads and has hired Atlantic Auctions to sell five of his smaller projects in a series of auctions early next month.
The Lighthouse Point property, a nine-acre parcel in the 2700 block of Boston Street, is not involved in the foreclosure proceedings or the auctions.
The largest of the five projects up for auction is the Washington Square town house development, a 26-unit project that was constructed within the past two years in the 1900 and 2000 blocks of Aliceanna Street and the 2000 block of Fountain Street, near the Canton waterfront.
The developer was Washington Square Associates Limited Partnership, which Mr. Rockwell controls. Two of the houses have been sold, and the remaining 24 houses will be sold at an auction on the premises May 1 starting at 11 a.m.
The other properties were owned by Baltimore Historic Properties II Limited Partnership, another Rockwell group that has been declared in default on a Maryland National loan.
The properties to be auctioned off at 10 a.m. May 2 are: a three-story office building at 714 Park Ave.; an office-residential buildingand carriage house at 826-828 Park Ave.; a three-story office building at 900 St. Paul St.; and a three-story apartment building at 935 N. Calvert St.
Mr. Rockwell could not be reached for comment.
According to court documents, his Washington Square Associates Limited Partnership owed Maryland National almost $3.9 million as of Jan. 11, and interest has been accruing at the rate of $1,248.23 per day.
Baltimore Historic Properties II Limited Partnership owed the bank almost $2.5 million as of Jan. 11, and interest has been accruing at the rate of $799.80 per day, according to court records.
Edward Levin, an attorney representing Maryland National, said Mr. Rockwell's groups have had difficulty because "the cash flow from the properties hasn't been sufficient to pay off the debt service."
Mr. Rockwell joined forces several years ago with Marinas Internationale owners Gale Brimhall and Dwayne Stephenson and developer Jim Bradley to prepare plans for the Lighthouse Point project on the former J. S. Young Licorice Co. property in the 2700 block of Boston Street. The initial phase of the project is a four-story building with 47 residences and 15,000 square feet of marine-related commercial space.
Later phases include town houses; a waterfront promenade; two five-story buildings for residences and commercial space; and a 15-story building for residences or offices.