December 7, 2010 in Business

Rock Pointe in receivership

Trustee’s sale set for share of Wells Fargo Building
By The Spokesman-Review
 

Rock Pointe Corporate Center has been placed in receivership, and a trustee’s sale of a second major Spokane building owned by a related group is scheduled for next week.

Rock Pointe tenants were notified Friday that Prium Companies, which in November 2005 paid $82.8 million for the complex, located at 316 W. Boone Ave., was no longer manager. No rent was to be paid to Prium, and no directions from that Tacoma company followed, according to a letter from Ted Durant & Associates Inc.

Friday, Durant was appointed receiver to manage Rock Pointe as a result of a suit filed in Pierce County Superior Court by Spokane Rock 1 LLC – a company whose brief description with the Secretary of State’s office lists only an agent and a manager, both in Seattle. The suit names as defendants two limited liability companies related to Prium.

The LLCs had improperly granted several deeds of trust on the Spokane property, the suit says, and a foreclosure sale was pending.

Meanwhile, Prium Spokane Buildings LLC faces the loss of the Wells Fargo Building, which it purchased in September 2006 for $25.7 million. Intervest Mortgage Investment Co., a subsidiary of Sterling Financial Corp., holds a $15.4 million note on the 17-story tower.

Inland Northwest Health Services owns six floors.

A trustee’s sale of Prium Spokane Buildings’ interest is set for Dec. 15.

Both the very recognizable buildings were sold to Prium Spokane Buildings by prominent developer and Davenport Hotel owner Walt Worthy, who had earlier sold the Tacoma-based company a smaller office building on East Trent.

But the market for commercial office space has softened dramatically in the last two years, and some major tenants, the Social Security Administration among them, have moved out of Rock Pointe.

Several Prium limited liability companies have filed for bankruptcy in Western Washington in recent months.

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