Tacoma garage property tied to Ponzi scheme sells in debt-collection case
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- Oak Hills Construction foreclosed, obtained the Graffiti Garages at sheriff sale.
- County records list assessed value near $2 million; sale price $521,890.09.
- iCap subsidiary 725 Broadway LLC tied to $230 million Ponzi scheme.
The long-abandoned Graffiti Garages property in Tacoma has sold to a local creditor who foreclosed on the site.
The property, 716-728 Commerce St., was sold Oct. 10 at a Pierce County sheriff’s sale to collect on debt owed to Milton-based Oak Hills Construction for unpaid work.
Oak Hills obtained the site in the sale, following being awarded a judgment against the owner LLC and a decree of foreclosure in July.
The county sale site was updated to state that the site was “sold to creditor for opening bid” of $521,890.09 and a notice was filed in Pierce County Superior Court Oct. 14 in the debt-collection case against the LLC.
The property has an assessed value of just under $2 million, according to county records.
The property owner/debtor, 725 Broadway LLC, is a subsidiary of Bellevue-based iCap, an investment fund that was found in a U.S. Bankruptcy Court ruling last year to have operated as a Ponzi scheme, defrauding investors of about $230 million.
A trust created to recover the investors’ losses has filed numerous lawsuits against entities related to iCap’s actions, including Tacoma-based Columbia Bank. Its Issaquah branch operating then as Umpqua was the bank used by iCap entities and its principals during the time that transactions at issue occurred. Columbia and Umpqua completed their merger in 2023, and Umpqua now operates as Columbia.
Columbia has stated that it “intends to vigorously defend our bank against any and all claims.”
The Tacoma garage property received a Notice of Abandonment in the iCap bankruptcy case earlier this year, which allowed Oak Hills to move forward with its lien foreclosure, according to court filings in Pierce County Superior Court.
Alice McDaniel is acting deputy assessor-treasurer for Pierce County. In an email in response to questions Wednesday, McDaniel told The News Tribune, “A deed will be issued to the new owner after the 12-month redemption period has passed and we/ Office of the Assessor-Treasurer will then update the tax rolls.”
This story was originally published October 23, 2025 at 5:15 AM.
