NOTICE OF TRUSTEE’S SALE OF COMMERCIAL LOAN
PURSUANT TO THE REVISED CODE OF WASHINGTON
CHAPTER 61.24, ET.SEQ.
Grantor: CV The Waverly, LLC
Grantee/Current Beneficiary of the Deed of Trust: Freedom REIT
Current Trustee of the Deed of Trust: Rainier Trustee Services, Inc.
Current Mortgage Servicer of the Deed of Trust: Freedom Financial Funds, LLC
Reference Number of the Deed of Trust: 202206080332
Tax Parcel Number: 0320024112
TO: CV The Waverly, LLC Occupants/Tenants
Sean T. Keys DM Recycling Company
Gretchen Keys Cliff Thorn Construction LLC
I.
NOTICE IS HEREBY GIVEN that the undersigned Trustee, Rainier Trustee Services, Inc., will on FEBRUARY 7, 2025, at the hour of 10:00 a.m., outside the Second Floor entry plaza, County City Building, 930 Tacoma Avenue South, in the City of Tacoma, State of Washington 98402, sell at public auction to the highest and best bidder, payable at the time of sale, the following described real property (the “Real Property”), situated in the County of Pierce, State of Washington, to wit:
PARCEL A:
That portion of that certain tract in the Southwest Quarter of the Southwest Quarter of the Southeast Quarter of Section 2, Township 20 North, Range 3 East of the Willamette Meridian, in Pierce County, Washington, conveyed to Puget Sound Power and Light Company, a corporation, by deeds recorded under Recording Nos. 1005934 and 1013319, lying Southerly of the Southerly line of Primary State Highway No. 1 and Northerly and Westerly of Interstate Highway No. 5.
EXCEPT that Portion conveyed to the City of Fife by Statutory Warranty Deed recorded February 22, 2017 under Recording No. 201702220833 and re-recorded under Warranty Deed recorded December 15, 2017 under Recording No. 201712150186.
PARCEL B:
That Portion of the Northwest Quarter of the Northwest Quarter of the Northeast Quarter of Section 11, Township 20 North, Range 3 East of the Willamette Meridian, in Pierce County, Washington, lying North and West of the Property conveyed to the State of Washington, by Deed recorded under Recording No. 1879607.
PARCEL C:
That Portion of the Southwest Quarter of the Southeast Quarter of Section 2, Township 20 North, Range 3 East of the Willamette Meridian, in Pierce County, Washington, lying South of the Old Puget Sound Electric Railway Right of Way and Westerly of a Line drawn parallel with and 110 Feet Northwesterly when measured at Right Angles and/or radially, from the Bonney Lake 223 Line Survey of SR 5 (P.S.H. No. 1) Tacoma to King County Line, in Fife, Pierce County, Washington.
(Tax Parcel Nos. 032002-405-3 and 032011-100-3)
NOW KNOWN AS Lot A of City of Fife Lot Line Adjustment No. LLA22-0003, recorded under Recording No. 202305315002
(Tax Parcel No. 032002-4-112)
The postal address of which is more commonly known as:
3100 Pacific Highway East, Fife, WA 98424
The aforesaid Real Property is subject to that certain Deed of Trust and Security Agreement and Financing Statement (the “Deed of Trust”), and the present Beneficiary described below has declared a default on the obligations secured by the Deed of Trust dated May 25, 2022, recorded on June 8, 2022, under Pierce County Recorder’s File No. 202206080332, records of Pierce County, Washington. The Deed of Trust was granted by CV The Waverly, LLC, a Washington limited liability company, the Grantor (“Grantor” or “Borrower”), to Stewart Title Guaranty Company, as the original Trustee, for the benefit of Freedom REIT, a Maryland statutory trust, the original beneficiary of the Deed of Trust (the “Beneficiary”). The Beneficiary is the current owner and holder of the Note and the obligations secured by the Deed of Trust.
Pursuant to the Deed of Trust, the Beneficiary is additionally the holder of a security interest in certain personal property and other property (collectively the “Additional Property”) described on Exhibit A, attached hereto and incorporated herein by this reference. The Real Property and the Additional Property shall hereinafter be collectively referred to as the “Property.”
II.
No action commenced by the Beneficiary of the Deed of Trust is now pending to seek satisfaction of the obligations secured by the Deed of Trust in any Court by reason of the Borrower’s or Grantor’s default on the obligations secured by the Deed of Trust.
III.
The defaults for which this foreclosure is made are as follows: Failure to pay when due the following amounts which are now in arrears:
a. Failure to pay the following past due amounts, which are due in full:
Principal: $3,881,371.38*
Accrued Default Interest from 07/01/2024, through 10/23/2024, at the rate of 20% per annum: $250,132.88**
Late Charges: $10,202.88
Delinquent Real Estate Taxes Paid by Beneficiary: $53,000.77
Reconveyance Fees: $650.00
TOTAL: $4,195,357.91 *The Promissory Note (the “Note”) secured by the Deed of Trust matured on December 1, 2023, on which date all amounts owing under the Note became immediately due and payable. The forbearance period with regard to the loan evidenced by the Note expired on June 1, 2024.
**Interest continues to accrue on the outstanding principal of the Note after October 23, 2024, at the default interest rate of 20% per annum and $2,156.32 per day.
(b) Default other than failure to make payments: Non-payment of property insurance as required pursuant to Section 12.1(b) of the Loan Agreement.
IV.
The sums owing on the obligations secured by the Deed of Trust are: Principal: $3,881,371.38, together with unpaid accrued default interest as provided under the Note or other instrument secured as referenced above from July 1, 2024, and together with such other advances, costs and fees as are due under the Note or other instrument secured and as are provided by statute.
V.
The above-described Property will be sold to satisfy the expense of sale and the obligations secured by said Deed of Trust as provided by statute. The sale will be made without warranty, express or implied, regarding title, possession, or encumbrances on FEBRUARY 7, 2025. The defaults referred to in Paragraph III must be cured by JANUARY 27, 2025 (11 days before the sale date), to cause a discontinuance of the sale. The sale will be discontinued and terminated at any time on or before JANUARY 27, 2025 (11 days before the sale date), if the defaults as set forth in Paragraph III are cured and the Trustee’s fees and costs are paid. The sale may be terminated any time after JANUARY 27, 2025 (11 days before the sale date), and before the sale, by the Borrower, Grantor, any Guarantor, or the holder of any recorded junior lien or encumbrance paying the unpaid principal and accrued default interest, plus other charges, costs, fees, and advances referred to in Paragraph III, made pursuant to the terms of the obligations secured by the Deed of Trust and curing all other defaults.
VI.
A written Notice of Default was transmitted by the Beneficiary or Trustee to the Borrower, Grantor and Guarantors at the following addresses:
CV The Waverly, LLC At: 17933 NW Evergreen Place,
Suite 300
Beaverton, OR 97006
CV The Waverly, LLC At: 17933 NW Evergreen Parkway,
Suite 131
Beaverton, OR 97006
CV The Waverly, LLC. At: 111 SW 5th Avenue, Suite 3800
Portland, OR 97204-3642
CV The Waverly, LLC
Sean T. Keys At: c/o Fortify Holdings
732 NW 19th Avenue
Portland, OR 97209
CV The Waverly, LLC At: c/o Cogency Global Inc.
1780 Barnes Boulevard SW
Tumwater, WA 98512-0410
Sean T. Keys At: 1507 NW 24th Avenue
Portland, OR 97209 by both first class and certified mail on August 9, 2024, proof of which is in the possession of the Trustee; and the Notice of Default was posted in a conspicuous place on the Real Property described in paragraph I above on August 11, 2024, and the Trustee has in its possession proof of such posting.
VII.
The Trustee whose name and address are set forth below will provide in writing to anyone requesting it, a statement of all costs and fees due at any time prior to the sale.
VIII.
The effect of the sale will be to deprive the Grantor and all those who hold by, through or under the Grantor of all their interest in the above-described Property.
IX.
Anyone having any objections to this sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections, if they bring a lawsuit to restrain the sale, pursuant to R.C.W. 61.24.130. Failure to bring such a lawsuit may result in a waiver of any proper grounds for invalidating the Trustee’s Sale.
X. NOTICE TO OCCUPANTS OR TENANTS
The purchaser at the trustee’s sale is entitled to possession of the Property on the 20th day following the sale, as against the Grantor under the Deed of Trust (the owner) and anyone having an interest junior to the Deed of Trust, including occupants who are not tenants. After the 20th day following the sale the purchaser has the right to evict occupants who are not tenants by summary proceedings under chapter 59.12. For tenant-occupied property, the purchaser shall provide a tenant with written notice in accordance with RCW 61.24.060.
XI. NOTICE TO GUARANTORS:
Any guarantor of the obligations secured by the Deed of Trust may be liable for a deficiency judgment to the extent the sale price obtained at the trustee’s sale is less than the debt secured by the Deed of Trust. All guarantors have the same rights to reinstate the debt, cure the default or repay the debt as is given to the Grantor and Borrower in order to avoid the trustee’s sale. Any guarantor will have no right to redeem the Property after the trustee’s sale. Subject to such longer periods as are provided in the Washington Deeds of Trust Act, Chapter 61.24 RCW, any action brought to enforce a guaranty must be commenced within one year after the trustee’s sale, or the last trustee’s sale under any deed of trust granted to secure the same debt. In any action for a deficiency, a guarantor will have the right to establish the fair value of the Property as of the date of the trustee’s sale, less prior liens and encumbrances, and to limit the guarantor’s liability for a deficiency to the difference between the debt and the greater of such fair value or the sale price paid at the trustee’s sale, plus interest and costs.
DATED October 23, 2024.
RAINIER TRUSTEE SERVICES,
INC., Trustee
By: /s/ Mark J. Rosenblum
Mark J. Rosenblum, Secretary/Treasurer Rainier Trustee Services, Inc. c/o SCHWEET LINDE & ROSENBLUM, PLLC 575 S. Michigan Street Seattle, WA 98108 (206) 275-1010
[Acknowledgment is on the following page]
STATE OF WASHINGTON ) ) ss.
COUNTY OF KING )
On this day before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared MARK J. ROSENBLUM to me known to be the Secretary/Treasurer of Rainier Trustee Services, Inc. (the “Corporation”), the Corporation that executed the foregoing NOTICE OF TRUSTEE’S SALE, and acknowledged the said instrument to be the free and voluntary act and deed of said Corporation, for the uses and purposes therein mentioned and on oath stated that he is authorized to execute the said instrument.
Given under my hand and official seal on October 23, 2024.
/s/ Maureen A. Fitzgerald
Maureen A. Fitzgerald
Notary Public in and for the State of Washington, residing at: Puyallup My commission expires:
9/27/2028
EXHIBIT A
ADDITIONAL PROPERTY
(a) Additional Land. All additional lands, estates and development rights hereafter acquired by Borrower for use in connection with the Land and the development of the Real Property and all additional lands and estates therein which may, from time to time, by supplemental mortgage or otherwise be expressly made subject to the lien of the Deed of Trust (collectively, the “Additional Land”);
(b) Improvements. The buildings, structures, fixtures, additions, enlargements, extensions, modifications, repairs, replacements and improvements now or hereafter erected or located on the Real Property (collectively, the “Improvements”);
(c) Easements. All easements, rights-of-way or use, rights, strips and gores of land, streets, ways, alleys, passages, sewer rights, water, water courses, water rights and powers, air rights and development rights, and all estates, rights, titles, interests, privileges, liberties, servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now or hereafter belonging, relating or pertaining to the Real Property and the Improvements and the reversions and remainders, and all land lying in the bed of any street, road or avenue, opened or proposed, in front of or adjoining the Real Property, to the center line thereof and all the estates, rights, titles, interests, rights of dower, rights of curtesy, property, possession, claim and demand whatsoever, both at law and in equity, of Borrower of, in and to the Real Property and the Improvements and every part and parcel thereof, with the appurtenances thereto (collectively, the “Easements”);
(d) Fixtures and Personal Property. All machinery, equipment, fixtures (including, but not limited to, all heating, air conditioning, plumbing, lighting, communications and elevator fixtures), furniture, software used in or to operate any of the foregoing and other property of every kind and nature whatsoever owned by Borrower, or in which Borrower has or shall have an interest, now or hereafter located upon the Real Property and the Improvements, or appurtenant thereto, and usable in connection with the present or future operation and occupancy of the Real Property and the Improvements and all building equipment, materials and supplies of any nature whatsoever owned by Borrower, or in which Borrower has or shall have an interest, now or hereafter located upon the Real Property and the Improvements, or appurtenant thereto, or usable in connection with the present or future operation and occupancy of the Real Property and the Improvements (collectively, the “Personal Property”), and the right, title and interest of Borrower in and to any of the Personal Property which may be subject to any security interests, as defined in the Uniform Commercial Code, as adopted and enacted by the state or states where any of the Property (as defined below) is located (the “Uniform Commercial Code”), and all proceeds and products of the above (collectively, the “Fixtures and Personal Property”);
(e) Leases and Rents. All leases, subleases, subsubleases, lettings, licenses, concessions or other agreements (whether written or oral) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of the Real Property and the Improvements, and every modification, amendment or other agreement relating to such leases, subleases, subsubleases, or other agreements entered into in connection with such leases, subleases, subsubleases, or other agreements and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto, heretofore or hereafter entered into, whether before or after the filing by or against Borrower of any petition for relief under any Creditors Rights Laws (collectively, the “Leases”) and all right, title and interest of Borrower, its successors and assigns therein and thereunder, including, without limitation, cash or securities deposited thereunder to secure the performance by the lessees of their obligations thereunder and all rents, additional rents, rent equivalents, moneys payable as damages or in lieu of rent or rent equivalents, royalties (including, without limitation, all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, deposits (including, without limitation, security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower or its agents or employees from any and all sources arising from or attributable to the Property, including, all receivables, customer obligations, installment payment obligations and other obligations now existing or hereafter arising or created out of the sale, lease, sublease, license, concession or other grant of the right of the use and occupancy of property or rendering of services by Borrower and proceeds, if any, from business interruption or other loss of income insurance whether paid or accruing before or after the filing by or against Borrower of any petition for relief under any Creditors Rights Laws (collectively, the “Rents”) and all proceeds from the sale or other disposition of the Leases and the right to receive and apply the Rents to the payment of the Debt (collectively, the “Leases and Rents”);
(f) Insurance Proceeds. All Insurance Proceeds in respect of the Property under any Policies covering the Property, including, without limitation, the right to receive and apply the proceeds of any insurance, judgments, or settlements made in lieu thereof, for damage to the Property (collectively, the “Insurance Awards”);
(g) Condemnation Awards. All Awards, including interest thereon, which may heretofore and hereafter be made with respect to the Property by reason of Condemnation, whether from the exercise of the right of eminent domain (including, but not limited to, any transfer made in lieu of or in anticipation of the exercise of the right), or for a change of grade, or for any other injury to or decrease in the value of the Property (collectively, the “Condemnation Awards”);
(h) Tax Certiorari. All refunds, rebates or credits in connection with reduction in real estate taxes and assessments charged against the Property as a result of tax certiorari or any applications or proceedings for reduction (collectively, the “Tax Certiorari”);
(i) Rights. The right, in the name and on behalf of Borrower, to appear in and defend any action or proceeding brought with respect to the Property and to commence any action or proceeding to protect the interest of Beneficiary in the Property (collectively, the “Legal Rights”);
(j) Agreements. All agreements, contracts, certificates, instruments, franchises, permits, licenses, plans, specifications and other documents, now or hereafter entered into, and all rights therein and thereto, respecting or pertaining to the use, occupation, construction, management or operation of the Land and any part thereof and any Improvements or any business or activity conducted on the Land and any part thereof and all right, title and interest of Borrower therein and thereunder, including, without limitation, the right, upon the happening of any default hereunder, to receive and collect any sums payable to Borrower thereunder (collectively, the “Agreements”);
(k) Intangibles. All tradenames, trademarks, servicemarks, logos, copyrights, goodwill, books and records and all other general intangibles relating to or used in connection with the operation of the Property (collectively, the “Intangibles”);
(l) Accounts. All reserves, escrows and deposit accounts maintained by Borrower with respect to the Property, including, without limitation, all cash, checks, drafts, certificates, securities, investment property, financial assets, instruments and other property held therein from time to time and all proceeds, products, distributions or dividends or substitutions thereon and thereof (collectively, the “Accounts”);
(m) Conversion. All proceeds of the conversion, voluntary or involuntary, of any of the foregoing including, without limitation, Insurance Proceeds and Awards, into cash or liquidation claims (collectively, the “Conversion Proceeds”); and
(n) Other Rights. Any and all other rights of Borrower in and to the items set forth above (collectively, “Additional Rights”).
The Additional Land, the Improvements, the Easements, the Fixtures and Personal Property, the Leases and Rents, the Insurance Awards, the Condemnation Awards, the Tax Certiorari, the Legal Rights, the Agreements, the Intangibles, the Accounts, the Conversion Proceeds and the Additional Rights are collectively referred to as the “Additional Property.”
Certain initially capitalized terms used herein are defined in the Deed of Trust or in the Loan Agreement (as defined in the Deed of Trust).
IDX-1005649
January 10 & 31, 2025
