Block 216 Foreclosure | Ritz-Carlton QOF Investor Lawsuit

Block 216 Foreclosure | Ritz-Carlton QOF Investor Lawsuit

Block 216 QOF Funds (Ritz Carlton): Securities Investigation featured by top securities fraud attorneys, The White Law Group

Concerned About Your Investment in Block 216 QOF or QOF II?

Call The White Law Group at 888-637-5510 for a free consultation concerning Block 216 Funds.

August 2025 Update: Block 216 Foreclosure Confirmed

Block 216—the highly publicized downtown Portland high-rise that includes Oregon’s first Ritz-Carlton hotel—has officially fallen into foreclosure.

On July 23, 2025, lender Ready Capital took possession of the entire property, including the Ritz-Carlton hotel, luxury condominiums, office space, and retail components. The takeover follows years of financial struggles, weak condo sales, low leasing activity, and mounting legal issues.

This development confirms what many feared: investors in Block 216 QOF and QOF II are facing significant, if not total, losses.

What Went Wrong with Block 216?

Although initially promoted as a premier luxury development, the Block 216 project has been plagued by serious financial challenges:

• Underperformance: The Ritz-Carlton hotel and branded residences generated far less revenue than projected.

• $26 Million Lien: In March 2024, general contractor Howard S. Wright filed a $26M lien for unpaid construction work.

• Lender Pressure: Ready Capital repeatedly signaled concern about refinancing and ultimately chose foreclosure rather than continued forbearance.

• Investor Losses: Attorneys for Ready Capital have already stated that QOF investors lost their entire investment.

Block 216 QOF & QOF II – Investment Losses

The White Law Group continues to investigate potential securities claims involving Block 216 QOF LLC and Block 216 QOF II LLC, both of which were used to raise capital for the project.

These funds were structured as Qualified Opportunity Funds (QOFs) and reportedly sold by Baker Tilly Capital, LLC and other brokerage firms. According to SEC filings, the company raised money through multiple Form D offerings in 2019, 2021, 2022, and 2023.

What is a QOF?

Qualified Opportunity Funds (QOFs) are investment vehicles created under the Tax Cuts and Jobs Act of 2017. They provide tax incentives to investors who reinvest capital gains in projects located in federally designated “Opportunity Zones.”

While marketed for their tax benefits, QOFs are often illiquid, high-risk, and speculative, with returns tied to the success of a single real estate development.

Potential Claims Against the Broker-Dealers

If your financial advisor recommended Block 216 QOF or QOF II without properly explaining the risks, or if the investment was unsuitable for your financial situation, you may have grounds to recover your losses through FINRA arbitration.

Potential claims may involve:

• Unsuitable investment recommendations

• Misrepresentation or omissions

• Failure to conduct proper due diligence

• Breach of fiduciary duty

How We Can Help

The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle. We represent individual investors in claims against brokerage firms through FINRA arbitration.

If you were sold Block 216 QOF or QOF II, our attorneys can review your case and help determine if your financial advisor acted in your best interest.

Free Case Evaluation

If you are concerned about your investment in Block 216 QOF or QOF II, call 888-637-5510 or fill out our online contact form for a free consultation with a securities attorney.

Don’t wait—there may be time limits on your ability to pursue a claim.

Frequently Asked Questions (FAQs)

Is Block 216 in foreclosure?
Yes. As of July 23, 2025, Ready Capital has taken possession of the building, effectively foreclosing on the project.

Did investors lose money in Block 216 QOF?
Yes. Reports indicate that all investors in the QOFs have suffered losses, many of which are total losses.

Who sold Block 216 QOF investments?
Block 216 QOF and QOF II were reportedly sold by Baker Tilly Capital, LLC and other third-party brokerage firms.

Can I recover my Block 216 QOF investment losses?
Possibly. If your advisor failed to disclose risks, misrepresented the investment, or sold an unsuitable product, you may be able to pursue recovery through FINRA arbitration.

What should I do if I invested in Block 216 QOF?
Contact a securities attorney as soon as possible to discuss your options for recovery.