Walter Bowen, a prominent developer and founder of BPM Real Estate Group, has filed a lawsuit against his former executive, Barclay Grayson, alleging elder financial abuse. Bowen, 83, claims that Grayson took advantage of his advanced age by signing financial documents without his consent.
The lawsuit was filed last week in Multnomah County Circuit Court, where Bowen accuses Grayson of appropriating money or property belonging to him by using a stamp with his signature to sign personal guarantees.
In response, Grayson, who previously served as BPM’s senior vice president, has filed a lawsuit of his own against BPM, claiming that the company failed to honor a sale agreement for a penthouse condo at Block 216, the Ritz-Carlton tower in Portland.
Grayson’s attorney, Thomas R. Rask III, has issued a blanket denial of the allegations but declined to comment on specifics while the cases remain pending.
Amid these disputes, BPM has faced significant financial difficulties, leading the company to hand over its Block 216 tower to a lender in July to avoid foreclosure. This property, along with another hotel developed by BPM, reflects the larger economic challenges facing downtown Portland in the wake of the COVID-19 pandemic and the social unrest of 2020.
BPM’s website has been down for several weeks, highlighting the turmoil within the firm as business disputes generate extensive court records, revealing internal issues.
In his lawsuit, Bowen’s legal team claims that Grayson was fired in early July after allegedly withholding crucial information regarding the sale of an undeveloped property. The lawsuit states that Grayson demanded a “Barclay fee” of 3.5% to disclose a potential buyer, raising further questions about his conduct during his tenure at BPM.
The relationship between Bowen and Grayson, which once appeared steadfast, began to deteriorate alongside BPM’s financial collapse and the underwhelming performance of the Block 216 project.
Historically, Bowen had expressed strong admiration for Grayson, praising his tireless work ethic during the groundbreaking event for Block 216 in 2019. However, recent developments suggest a drastic shift in their relationship, as both are now embroiled in separate legal battles.
Court documents reveal that as recently as January, both men were positioned to own neighboring penthouses at the Ritz-Carlton. Bowen had intended to purchase a penthouse unit following the sale of his Lake Oswego mansion, while Grayson was also engaged in selling his Lake Oswego home.
Despite these ambitions, the financial struggles of Block 216 led to major disturbances in their relationship and the future of the project.
Since the hotel’s opening in 2023, issues such as low occupancy rates and minimal condo sales have contributed to BPM’s distress. Consequently, Ready Capital, the lender that has taken over the Block 216 tower, is working on stabilizing the investment and scouting potential buyers for over 100 unsold condos.
The dynamics of this legal battle highlight not only the personal disputes between Bowen and Grayson but also the larger implications for the real estate market in Portland, which relies heavily on both community connections and financial soundness.
As a response to BPM’s financial distress, the lawsuit indicates that Bowen could receive a consulting agreement worth $1 million annually for three years with the new owners if he cooperates with the lender’s transition efforts. This comes after Bowen had initially recruited investors for the Block 216 project through a federal opportunity zone program, allowing them to defer taxes on capital gains while also raising significant funding for development.
However, experts are now expressing concern over the future viability of investments made into the project. The opportunity zone mechanism typically offers few protections for investors against losses, which unequivocally means that many involved may see little to no return on what they invested in the troubled Block 216 project.
As these legal issues continue to unfold, the repercussions for Bowen and Grayson and their reputations within Portland’s close-knit real estate community remain uncertain. With BPM’s financial future hanging in the balance and significant legal disputes at play, the focus will likely shift to the ongoing efforts to stabilize the building, as well as to how both parties navigate the fallout from this extraordinary breakdown in their professional partnership.
image source from：chronline
