A downtown Austin property scheduled for foreclosure paused the process with a last-minute Chapter 11 filing, offering a clear look into how leverage, timing, and entity structure interact in today’s commercial real estate market. The case shows that while single-asset LLCs can isolate risk, they cannot compensate for high leverage and weak structural safeguards in redevelopment-driven assets.

Hasen Construction LLC, led by Brandon Chasen, rose quickly in Baltimore’s adaptive-reuse market by converting aging offices into housing, including the $11 million One Calvert Plaza project. But rapid expansion built on high leverage and short-term debt unraveled as rates rose and liquidity dried up, leading to defaults and bankruptcy. Weak governance and minimal reserves exposed deeper structural flaws, showing that in real estate, vision without structure is risky.

Bankruptcy offers a financial reset for those overwhelmed by debt. The two main types, Chapter 7 and Chapter 11, serve different needs. Chapter 7 liquidates non-exempt assets to clear most debts quickly, while Chapter 11 allows businesses to reorganize and continue operating under court oversight. Knowing which fits your situation is key to regaining financial stability.

KRCM Astoria Portfolio Corp., owner of three multifamily buildings in Astoria, Queens, filed for Chapter 11 bankruptcy on October 8, 2025. The single-asset real estate case reflects tightening refinancing conditions and valuation pressures across New York’s outer-borough markets. At SPE Specialists, we track such filings to assess regional stress and advise on restructuring strategies as smaller operators navigate rising costs and limited credit access.