New building owner at Point Ruston? Buyer’s offer emerges in latest court filings
One of the Point Ruston properties tied to delinquent debt owed to one of the site’s lenders could change hands if a proposed sale is approved.
In a motion to approve the sale, a representative for Resource Transition Consultants, the property’s general receiver, said RTC had received an offer for the 5103-5109 Main St. retail building.
The portion includes Farrelli’s Wood Fire Pizza and Ice Cream Social, among other brands located at the property, known as Building 18 at Point Ruston.
The site has been marketed by Kidder-Mathews for an asking price of $8.75 million. The building has an assessed value of more than $8.3 million, according to county assessor-treasurer records.
The proposed buyer is listed as Do Jin Jung of Federal Way, who has offered $8.5 million.
Under terms of the purchase and sale agreement, the buyer has 60 calendar days to secure financing.
In December, the receiver was granted approval to hire a broker to market and sell three parcels tied to PR Main Street Retail LLC, which include two retail strips (Buildings 8 and 18) and the movie theater. Building 8 includes such tenants as Multicare Indigo Urgent Care and O Bee Credit Union.
The LLC was among a cluster of Point Ruston business entities tied to seven parcels that came under receivership in a lawsuit filed last spring by TerraCotta Credit REIT of El Segundo, California.
TerraCotta specializes in commercial real estate, finance and investing. It began entering into various Point Ruston loan agreements in 2019. TerraCotta contends the LLCs owe more than $82 million in unpaid principal balance, interest, fees and attorneys’ fees.
Attorneys for TerraCotta as of May 24 had not yet responded in court filings to the proposed sell-off of one of the three sites broker-marketed for sale. An attorney for TerraCotta also did not immediately respond to a request for comment from The News Tribune.
The next court hearing date in TerraCotta’s case is tentatively scheduled in June.
A previous purchase proposal mentioned in filings last summer regarding Point Ruston retail parcels in receivership fell through as legal arguments between TerraCotta and RTC escalated.
Sale of four sites on pause and other debt collection
TerraCotta in December was approved to move forward on foreclosure sale of the four other properties tied to its collection efforts. Those include commercial and retail space on the ground floor of Village on Main Apartments at 5020 Main St., and three vacant lots (future Buildings 14, 15, 16) which had been envisioned for multifamily-unit development along Yacht Club Road.
The foreclosure action was paused after an RTC legal challenge over a separate TerraCotta debt collection lawsuit in California.
RTC’s action resulted in an April 12 order that denied its challenge but also imposed a 90-day delay in any foreclosure action by TerraCotta on the four sites, pending appeal.
Meanwhile, another Point Ruston lender, AURC III, received a more-than $91 million judgment against Point Ruston Phase II LLC in early April, putting the site’s Waterfront Market and parking garage on track for a sheriff’s sale to help collect on its own construction debt.
A notice of appeal seeking review of orders and final judgment in the case by the state Court of Appeals Division II was filed by Point Ruston LLC in the case April 26.
News Tribune archives contributed to this report.
