The Avalon School, a Catholic private school for boys, will continue to operate out of First Baptist Church of Gaithersburg.
In 2007, the school was granted a special exception to build on a 10-acre site on Frederick Road (Rt. 355). The site would have been composed of four buildings to accommodate 600 students, according to county planning records.
But a sharp drop in enrollment and the failure to secure a construction bond made it "impossible" to repay a $2.2 million loan, school president Richard McPherson reportedly told The Gazette.
Foreclosure proceedings were initiated in May 2011; properties were sold at auction for $1.2 million on March 23, 2012, The Gazette reports.