Levenson & Klein warehouse bought by Signet at auction

November 14, 1992|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

Signet Bank/Maryland bought back the old Levenson & Klein warehouse in East Baltimore yesterday after a brief auction at which the bank, which had held the mortgage on the building, was the only bidder.

The bank, which bid $1.225 million, is likely to sell the building on Erdman Avenue to a developer who would divide up its 305,000 square feet for use by more than one tenant, said R. Andrew Stafford, an auctioneer for Atlantic Auctions Inc., which conducted the auction.

"Everyone indicated it was a little too large for a single user," Mr. Stafford said.

Levenson & Klein went bankrupt in 1990, and the warehouse belonged to a partnership controlled by the furniture retailer.

Mr. Stafford did not express surprise about the light bidding at the auction, noting that lenders who held liens on properties have often been forced to buy the properties at auctions and resell them later. "It was a typical large foreclosure for this marketplace," he said.

Andrzej Koplewski, a loan workout executive for Signet, said the bank planned to sell the building. "We're dealing with a number of parties, so that is continuing," he said. He said he did not know whether the building was likely to be subdivided.

A pleading filed by Signet in the Circuit Court for Baltimore City in August put the debt on the building at $2,979,855.

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