Lender to Walt Bowen’s Ritz-Carlton Tower Knew Project Was in Trouble Early On, Lawsuit Says
A lawsuit alleges Ready Capital concealed Block 216's financial issues before acquiring Broadmark Realty Capital Inc., harming shareholders.Summary
A lawsuit filed by Broadmark Realty Capital Inc. shareholder Brian Grant alleges that Ready Capital knowingly concealed the financial troubles of the Block 216 project – including the Ritz-Carlton Hotel and residences – before completing its merger with Broadmark in May 2023. Grant claims Ready Capital failed to disclose risky loans, including the $460 million loan initially made by Mosaic Real Estate Investors and later acquired by Ready Capital, in proxy materials provided to Broadmark investors. The lawsuit further asserts that Ready Capital continued to lend Bowen’s company an additional $47 million despite knowing the Portland project was already “underwater.” Following the merger, Ready Capital’s stock price plummeted, causing significant losses for former Broadmark shareholders. Ready Capital foreclosed on Block 216 in July, and Grant is seeking class action status for his complaint.
(Source：Willamette Week)