The Marriott Tacoma Downtown is officially back in the hands of its lender after a trustee’s sale on Friday, shifting control of the 304-room hotel built in 2020 to the project’s creditors. The auction, held outside the Pierce County County-City Building, capped months of legal and financial headaches for developer Yareton Hotel Investment Management and followed a receivership that began in the summer of 2025.
What happened at the auction
Trustee-sale paperwork filed with Pierce County lists Delphi CRE Funding LLC, an affiliate of Delphi Financial Group, as the beneficiary, and Beacon Default Management ran the auction, according to The News Tribune. Beacon’s website reportedly showed the property as sold for $50 million, a credit bid that will be applied to the outstanding loan. A trustee notice filed in October put the principal and accrued interest at roughly $76.3 million, according to the public trustee notice on file with Tacoma Daily Index. The trustee documents identify Delphi as the lender attempting to collect on development debt tied to the hotel.
Loan history and receivership
Reporting from Tacoma Weekly reviewed court filings showing Delphi filed a complaint in July alleging that Yareton defaulted on payments tied to a loan originated in 2021 and asked the court to appoint a receiver. The complaint alleged the developer had fallen behind on a roughly $70 million construction loan and that onsite managers at times advanced their own funds to cover payroll and other basic operations. That reporting also notes Yareton is a subsidiary of Shanghai Mintong Real Estate Co., and that there have been few new filings since an October status report.
What this means for the hotel
Credit bidding allowed the lender to take title when no higher bidder stepped up at the sale. Beacon Default Management CEO Selina Parelskin told The News Tribune that “the property reverted back to the beneficiary.” Delphi, identified on the trustee paperwork as Delphi CRE Funding LLC, did not immediately respond to requests for comment about its plans for the site, according to the reporting.
Local context and next steps…