Point Ruston developer backs out of luxury condo project in downtown Puyallup. Here’s why

The developer behind plans for luxury condos in downtown Puyallup has backed out of the project.

The McBride-Cohen Management Group had plans to build The Ezra at Pioneer Park at 330 Third St. SW. The four-story building was going to have 66 condominiums.

“Due to rising costs, an unfavorable market, and economic conditions, we, the City, and the developer have amicably agreed to bow out of the multi-family housing project,” the city said in a statement Monday.

The statement went on to say that “the building was slated to be a catalyst development for downtown Puyallup. However, due to recent changes in the real estate market, rising costs, inflation, and interest rates, we have jointly agreed to terminate their purchase and sale agreement.”

The developer was going to buy the property from the city for $1.4 million and hoped to break ground next year, The News Tribune reported. The site, which the city calls the AOB (Administrative Office Building) lot, is a parking lot today and is where the old City Hall used to stand.

The developer entered into the purchase-and-sale agreement with the city in November 2021 and ended it in a letter to the city April 28.

When The News Tribune asked the developer for comment, Conor McCarthy, senior counsel and government affairs director for Puyallup AOB Development, LLC, responded Monday by sharing a copy of the letter with The News Tribune.

“It is extremely unfortunate that we have come to this conclusion, but after engaging in rigorous due diligence and investing considerable time and resources into the development and permitting processes, we have determined that the challenges associated with the site, soil, and stormwater conditions, as well as applicable development, parking and design requirements, in addition to the prevailing market factors, render the project prohibitive at this time on this site,” McCarthy wrote the city.

The letter went on to say: “We truly value our relationship and, as you are aware, we have committed significant resources in a good faith attempt to make this project a success in accordance with the terms of our Agreement. We look forward to working with you again on future opportunities to build exceptional projects in Puyallup.”

What’s going to happen to the property downtown and to the sales office?

The letter that ended the agreement also ended the lease for an Ezra sales office that’s been operating underneath City Hall since last July at 333 S. Meridian, Suite 105.

McCarthy told The News Tribune he believed five condos had been pre-sold and that refunds to those buyers were in the works.

“The Ezra is going to be a catalyst for downtown, bringing in new residents who want to shop, dine and recreate. I have no doubt that these new condos will … sell out well before construction,” Mayor Dean Johnson said in a news release about the sales office opening last year.

Developer Loren Cohen said in the same release: “The Ezra is a historic chance to create a new place for those looking for affordable luxury living less than five minutes away from the Sounder Train line.”

Cohen is also the developer behind the Point Ruston project in Tacoma — 97 acres of residential and retail facilities.

There are no immediate plans for the leased sales office space, city spokesperson Eric Johnson told The News Tribune Monday.

As for the AOB lot, he said the city still wants to pursue selling it to develop more housing downtown.

“Selling the lot to create more housing downtown is a priority for the City and has been for several years,” the city’s statement said Monday. “It is an action item in the City’s Comprehensive Plan, and we fully intend to accomplish that vision in the future.”

News Tribune archives contributed to this report.