RUSTON, Wash. — An investment group is foreclosing on a parcel of land in Point Ruston after a judge ordered the developer to repay its defaulted loan.
The parcel that is being foreclosed includes the parking garage and Point Ruston's Waterfront Market.
The developer has been in a years-long legal battle with investors over its inability to make loan payments. Court documents detail that although the developer, including Point Ruston, LLC, Point Ruston Phase II LLC and other associated companies, initially made loan payments, they were often late or inconsistent. Out of the first 27 quarters of the loan, 24 payments were delinquent. Documents filed in June of 2023 note that the defendants have not made a loan payment since March of 2021.
Last Friday, a judge ruled that Point Ruston LLC, Point Ruston Phase II LLC and other LLCs involved in the development of the property must repay an investment group $91 million - a repayment of an initial $66 million loan and an additional $25 million in interest, plus hundreds of thousands in attorney fees. The judgment will accrue interest at a rate of 9% per year.
The investment group, AURC III LLC, filed a decree of foreclosure on the same day as the ruling. The land parcel will be auctioned off by the Pierce County Sheriff's Department, and the developer will be responsible for any of the costs not recouped through the sale.
