The Round tumbles toward foreclosure

Attorney files notice claiming downtown Beaverton project's developer could be behind on $31.5 million loan

By Christina Lent

The Beaverton Valley Times, Jul 26, 2007, Updated Oct 30, 2009 (6 Reader comments)

Jonathan House / Times Newspapers

The Round at Beaverton Central was built to include condos near the westside light-rail station. It has had a troubled development history.

The troubled Round at Beaverton Central development might face foreclosure and could be sold at auction in December.

A Lake Oswego attorney filed a foreclosure notice Friday on property owned by Dorn-Platz Properties Beaverton Holdings LLC, claiming the developer had fallen behind with payments on a $31.5 million debt.

DB Beaverton LLC, a limited liability company assigned the trust deed by Wachovia Bank, initiated foreclosure of the property after the developer reportedly failed to meet its financial obligations.

If the foreclosure is granted, The Round at Beaverton Central could be sold at a Dec. 3 Washington County auction in Hillsboro.

In the three-page July 20 notice, attorney Douglas Cushing of Jordan Schrader Attorneys at Law claimed that the property owner was in default for “failure to discharge construction liens filed against the property; failure to make payment required on Dec. 1, 2006, and thereafter under the terms of the master lease date Oct. 1, 2006; failure to make required reserve payments; and misuse of funds disbursed under the loan.”

Dorn-Platz representatives did not return several phone calls seeking comment on the issue.

Meanwhile, the trust deed holder has demanded that all outstanding debts be paid immediately.

That total includes the principal of a $31.5 million loan, interest, outstanding construction liens and reimbursements for any funds advanced by DB Beaverton LLC to protect its security interest in The Round.

Friday’s notice comes at a time when the city and Metro are trying to find a developer for the former Westgate Theater property, a 4.57-acre site west of The Round in Beaverton’s downtown core.

Linda Adlard, the mayor’s chief of staff, began looking into the issue Monday after receiving a copy of Cushing’s foreclosure notice.

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