One of Towson's biggest office buildings is scheduled to go on the auction block next week, as insurance giant Aetna Corp. forecloses on Court Towers, a 135,000-square-foot building developed by the Trammell Crow Co.
Trammell Crow defaulted on a $23.7 million loan it received from Aetna in 1990, according to Baltimore County Circuit Court records. The company owes Aetna more than $26 million.
Donald G. Taylor, regional managing partner for Trammell Crow, blamed the foreclosure on high debt and falling rental rates for office space.
"The rents at which the buildings' [financing] was underwritten have fallen," said the Rockville-based executive of the Dallas development firm. "Basically, rents have fallen in many, many markets."
The building is about 90 percent leased, Mr. Taylor said. It is scheduled to go to auction next Friday.
An attorney for Aetna did not return telephone calls.