Lord Baltimore to be sold FDIC says developer defaulted on loan

April 27, 1991|By Timothy J. Mullaney

The Federal Deposit Insurance Corp. has put the Lord Baltimore Hotel on the auction block, saying that a partnership led by Rockville developer Saul Perlmutter has defaulted on a $16 million loan that has grown to more than $22 million with back interest.

Alex Cooper Auctioneers Inc. will try to sell the building May 15 at noon, said Paul R. Cooper, vice president of the firm. The auction will be held at the site.

The historic hotel, built in 1926 and renovated by Mr. Perlmutter in 1985, isn't a stranger to financial trouble, said Mr. Cooper, whose grandfather auctioned off the building more than 20 years ago.

The loan was originally made by Yorkridge Savings & Loan Association to finance the renovation but was sold later to a New York thrift. The FDIC inherited the note in 1987 when it took over the New York thrift.

The 24-story hotel has 440 guest rooms, two full-service restaurants and other facilities. Its full name today is the Radisson Plaza Lord Baltimore Hotel, and it is located at Baltimore and Hanover Streets in downtown Baltimore.

The partnership that owned the hotel filed for bankruptcy protection in 1987 and went through a reorganization that was approved by a U.S. Bankruptcy Court judge in 1989. The partnership originally bought the hotel in 1983.

The hotel is also subject to liens other than the FDIC's, Mr. Cooper said.

One other lien, resulting from a $2 million loan made by Sharon Bank to provide working capital while the partnership was in bankruptcy court, may have precedence over the FDIC's claim.

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