S2G LLC, which includes Portland lawyer John Stewart, made the winning bid in US District Court. Judge Garr King handled the auction, as he is also handling several civil lawsuits against Capital Consultants and Grayson, its founder.

Portland Lawyer John Stewart confirmed for GlobeSt.com Thursday afternoon that his law firm, Stewart, Sokol & Gray, will ultimately occupy the space, though he does not know when. The firm is currently located at 1 SW Columbia in Downtown Portland.

Capital Consultants was handed over to a court-appointed receiver last fall following charges by the US Dept. of Labor and the Securities and Exchange Commission. The agencies accuse Capital Consultants and Grayson of covering up more than $300 million in client losses from failed investments.

The court-appointed receiver is liquidating Capital Consultants assets. Capital Consultants owned 49% of Capital Center, which was built in 1971. Grayson, who owned the other 51%, reportedly objected to the sale initially, but later relented.

CB Richard Ellis broker Lou Lauman, exclusive listing agent for Capital Center, tells GlobeSt.com that bidding for the property started at $2.54 million because the receiver, Tom Lennon of San Diego, had entered into a purchase and sale agreement with S2G LLC for that amount--subject to the results of the auction. At the auction, S2G LLC had to outbid its own purchase and sale agreement by about $500,000 in the face of two other bidders, the names of whom Lauman chose not to reveal.

Instant Insights /

(Lost) Capital Center Auctioned for $2.95 Mil

Related Stories

Recommended For You