A receiver has been appointed by the Pierce County Superior Court for six properties associated with the developer of Point Ruston, a large-scale residential, retail, and office development on Commencement Bay. This decision was made in response to a lawsuit filed by TerraCotta Real Estate Services, a lender seeking to collect $73.8 million in outstanding debt related to these properties, according to a report from the Puget Sound Business Journal. The properties under receivership include Ruston addresses at 5020, 5057 and 5103-5109 Main St., 5320 Yacht Club Road, as well as two unspecified locations on North 52nd Street and Yacht Club Road.
These properties currently house various retail businesses such as Century Theatres, Ice Cream Social and Purpose Boutique, along with sites that are either under construction or yet to be developed. The foreclosed properties are scheduled to be sold on Aug. 4 and Sept. 8. However, if the debt is paid off by July 24, the sales can be avoided.
Loren McBride Cohen, the owner and CEO of the McBride Cohen Co., is the individual associated with these properties. In the report, Cohen, who also serves as the managing director and sole owner of Point Ruston LLC, expressed confidence that the terms will be resolved before the sale, citing the challenges faced by commercial properties due to economic headwinds and tightness in the commercial real estate credit markets.
The foreclosure of these properties is the latest in a series of legal and financial issues faced by the Point Ruston developer. Earlier in April 2022, a Tacoma concrete subcontractor obtained ownership of a Point Ruston property after a lien was placed on it for unpaid construction costs. Another lender, American United EB-5 Regional Center, is seeking to recover $80 million and has a court-set deadline for debt settlement in November.
Despite these challenges, Cohen is currently involved in a large mixed-use project in Tempe, Ariz., called South Pier at Tempe Town Lake. The project, which secured a $223 million construction loan, includes residential units, senior housing, hotels, retail space and high-rise office space.