Downtown Tacoma hotel auction now set for next year as receivership continues
AI-generated summary reviewed by our newsroom.
- Auction for downtown Tacoma Marriott moved to Jan. 16 amid receivership.
- Developer Yareton defaulted on a $70M 2021 loan; receiver controls revenue.
- Trustee sale slated outside County-City Building to collect on debt.
An auction set to collect on development debt of a downtown Tacoma hotel is now scheduled for January.
A status update filed with Pierce County Superior Court last month ahead of a scheduled Oct. 31 hearing announced the new auction date.
The trustee sale is scheduled for 10 a.m. Jan. 16 outside the second-floor entry plaza at the County-City Building, 930 Tacoma Ave. S.
Earlier court filings and public listings showed an auction date in November.
The News Tribune reported in September that Yareton Hotel Investment Management LLC of Seattle, the developer behind the Marriott Tacoma Downtown, 1538 Commerce St., was in financial arrears with its lenders on the project.
According to the initial complaint filed in July, Yareton has defaulted on payments tied to a $70 million loan dating back to 2021. Yareton is a subsidiary of Shanghai Mintong Real Estate Co. of China.
The original complaint noted missed loan payments and strained financial situation where the site manager resorted to paying out of personal funds to meet expenses such as payroll.
A receiver was assigned to the debt collection case in July.
Attorneys for an LLC subsidiary of Delphi Financial Group, the development’s co-lender, wrote in the October filing, “The receiver anticipates filing his final account and report as soon as practicable following the trustee sale via noticed motion or stipulation.”
The filing also noted that the order for the receiver “empowers the receiver to receive revenues, rents, issues and profits now due and unpaid or to become due pending this action and issuing out of the receivership estate.”
The hearing set for the end of October was cancelled, and for now no further court action is listed on the docket other than an April hearing.
Previous reporting from The News Tribune contributed to this report.
