Tower auction canceled due to bankruptcy

January 13, 1995|By Timothy J. Mullaney | Timothy J. Mullaney,Sun Staff Writer

The auction of the NationsBank Center II tower was canceled yesterday after the building's owner filed for bankruptcy court protection from creditors.

Tower II Associates L.P. filed for Chapter 11 on Wednesday, said Joseph Schaller, an attorney for Provident Bank of Maryland, the foreclosing lender. The partnership, controlled by Ackerman & Co. of Atlanta, owed Provident $1.05 million as of Dec. 21, the remainder of a $1.45 million loan the bank made in 1989.

Provident only has the third mortgage on the property, formerly known as the Equitable Bank Center II, Mr. Schaller said. The first and second mortgages are held by First American Bank and the Resolution Trust Corp., the federal agency that took over the failed Baltimore Federal Financial savings and loan in 1989.

The auction had not been expected to find a buyer. Legally, anyone who bought Provident's interest in the building would have only received title to the building by agreeing to assume the first two mortgages.

Mr. Schaller estimated that the two earlier mortgages total about $17 million, which he said was likely double the value of the building.

Ackerman & Co. officials did not respond to a request for comment yesterday.

The building at 100 S. Charles St., bounded by Charles, Lombard and Pratt streets and the Garmatz Federal Court House, is 81 percent filled.

Its occupants include Blue Cross & Blue Shield of Maryland's subsidiary CareFirst and Mead Data Central.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.