Block 216 Investor Recovery Center: Iorio Law Investigates Baker Tilly, Torrey Capital, and Stonehaven for Investor Losses
Did you lose money in the Block 216 QOF, LLC investment? You are not alone. Iorio Law PLLC is actively investigating claims on behalf of investors who purchased this failed Opportunity Zone fund through brokerage firms including Baker Tilly Capital, LLC, Torrey Capital, LLC, and Stonehaven, LLC.
The ambitious Block 216 tower in Portland, Oregon—home to the Ritz-Carlton hotel and luxury residences—has officially collapsed. In a process known as a deed-in-lieu of foreclosure ,the developer has surrendered the property to the primary lender. This event confirms a likely total loss for the nearly $64 million in equity raised from investors.
Your investment losses, however, are not merely a case of market misfortune. The focus of our investigation is on the conduct of the brokerage firms that sold this high-risk private placement, including Baker Tilly Capital, LLC, Torrey Capital, LLC, and the associated broker-dealer Stonehaven, LLC.
Iorio Law PLLC, a nationally recognized securities arbitration law firm, is investigating allegations that these firms failed to perform adequate due diligence, misrepresented the investment’s risks, and recommended an unsuitable product to their clients. Our mission is to fight for investors and hold brokerage firms accountable for their misconduct.
This page details the basis of our investigation into the sale practices of broker-dealers that sold Block 216 QOF to investors and outlines the potential legal claims available to investors seeking to recover their losses through FINRA arbitration. Our firm is led by securities arbitration attorney August M. Iorio, who has recovered nearly $100 million for clients in over 700 cases.
If you have suffered financial losses in the Block 216 QOF, LLC fund, contact Iorio Law PLLC today for a free and confidential consultation. We are here to help you understand your legal options and fight for the compensation you deserve.
What Happened to the Block 216 Investment? A Confirmed Total Loss
The grand vision for Block 216 has ended in a complete financial disaster, culminating in the developer handing the property back to the lender. This confirms that all equity invested in the project has been wiped out.
Deed-in-Lieu of Foreclosure: The developer has transferred the title of the property back to the lender, Ready Capital, to avoid a formal foreclosure process. This is a definitive admission of the project’s failure.
Total Investor Loss Confirmed: Because the property’s value is worth significantly less than the senior debt owed, the deed-in-lieu of foreclosure extinguishes any chance of recovery for equity investors. This means a total loss of principal for those who invested in the Block 216 QOF, LLC.
$63.9 Million in Investor Capital Lost: According to Form D filings with the Securities and Exchange Commission (SEC), the Block 216 QOF, LLC sold $63,919,121 of the offering to investors. This capital is now gone.
Catastrophic Performance: The project’s failure was sealed by its dismal operating numbers. As of early 2025, only 8% of the luxury condominiums had been sold, and just 23% of the office space was leased.
What this means for investors: The project is over. Your investment in the Block 216 QOF, LLC will not be recovered from the property itself. The only viable path to recovery is a claim against the brokerage firm that sold you this flawed investment.
Why Your Brokerage Firm May Be Liable for Your Losses
Your path to financial recovery is not through the insolvent project, but may be through a claim against the firm that sold you the investment. Broker-dealers like Baker Tilly Capital, Torrey Capital, and Stonehaven, LLC have a fundamental duty to ensure that the investments they recommend are in their clients’ best interests. Our investigation has revealed serious potential failures by these firms to meet their legal and ethical obligations.
In the offering materials for Block 216 QOF, LLC, Baker Tilly Capital, LLC emphasized its “specialization in Opportunity Zone real estate investments” and “unique qualifications” as a trusted advisor. The firm also touted a “rigorous independent due diligence” process, suggesting that investors could rely on their expertise to mitigate risks. Yet, the current financial distress of Block 216 calls into question whether this due diligence was as thorough as promised—or if material risks were inadequately disclosed to investors.
As securities arbitration attorneys, we at Iorio Law PLLC are concerned that Baker Tilly Capital, LLC may have failed to meet its obligations under securities laws. Broker-dealers and investment advisors are required to conduct reasonable due diligence on private placement offerings and ensure recommendations are suitable for their clients. If Baker Tilly misrepresented the stability of Block 216 QOF, LLC or overlooked red flags during its vetting process, investors who suffered losses may have grounds to recover their funds through FINRA arbitration claims.
We are investigating whether these firms:
Failed to Conduct Reasonable Due Diligence: Broker-dealers must thoroughly vet the high-risk, speculative private placements they sell. We are investigating whether the selling firms overlooked or ignored significant red flags, including the project’s wildly optimistic financial projections and the hostile market conditions in downtown Portland.
Failed to Disclose an Executive’s Felony Fraud Conviction: Our research uncovered that a senior executive at the investment issuer, Barclay Grayson, had previously pled guilty to fraud charges related to another investment where investors lost money. A rigorous due diligence process should have uncovered this critical fact. Failing to disclose it to investors is a monumental omission of material risk.
Misrepresented the Investment: Did your financial advisor present the Block 216 QOF as a stable or secure investment while downplaying its speculative nature and significant risks?
Made Unsuitable Recommendations: The Block 216 QOF was a high-risk, illiquid investment with long lock-up periods. This type of investment is not suitable for all investors. We are investigating whether the brokerage firms recommended this fund to clients whose risk tolerance, financial situation, and investment objectives were not aligned with such a speculative venture, a violation of FINRA’s suitability rules and Regulation Best Interest.
If your brokerage firm engaged in this misconduct, it can be held liable for the investment losses you suffered.
How Can Block 216 Investors Recover Their Losses?
Investors can pursue financial recovery by filing a FINRA arbitration claim against the brokerage firm that sold them the investment, including Baker Tilly Capital, LLC or Stonehaven, LLC. FINRA (Financial Industry Regulatory Authority) runs a specialized forum to resolve disputes between investors and brokerage firms. It is a faster and more efficient process than a traditional court lawsuit.
Iorio Law PLLC has extensive experience representing investors in FINRA arbitration. We work on a contingency-fee basis, which means you pay us no fees unless we win a recovery for you.
Frequently Asked Questions (FAQ) for Block 216 Investors
What is Block 216 QOF, LLC? It is a Qualified Opportunity Zone (QOZ) fund, a type of high-risk, illiquid private placement investment. These funds were created to offer tax incentives for investing in economically distressed areas, but they carry substantial risks that must be fully disclosed to investors.
How much money was invested in the Block 216 QOF? According to SEC filings, investors purchased $63,919,121 worth of the Block 216 QOF, LLC offering.
Can I get my money back from the Block 216 project itself? No. The project has been turned over to the lender via a deed-in-lieu of foreclosure because its debts far exceeded its value. This action confirms a total loss of equity. The only viable path for recovery is a claim against the brokerage firm that sold you the investment.
What did the brokerage firms do wrong? Our investigation focuses on allegations that firms like Baker Tilly Capital and Stonehaven, LLC failed to perform adequate due diligence, misrepresented the investment, and recommended an unsuitable, high-risk product.
How much does it cost to hire Iorio Law PLLC? We handle all securities arbitration cases on a contingency-fee basis. This means you do not pay any attorney’s fees unless we successfully recover money for you.
What should I do if I invested in Block 216 QOF, LLC? Act quickly. Statutes of limitation apply to filing FINRA arbitration claims, so it is critical not to delay. Contact Iorio Law PLLC immediately to preserve your rights. Gather all documents related to your investment, including account statements and communications with your advisor.
Why Choose Iorio Law PLLC?
Investor-Only Advocacy: We only represent investors—not brokerage firms
Track Record: Nearly $100 million recovered for harmed investors
Proven Experience: Over 700 cases handled nationwide
August Iorio is a wonderful, very competent attorney. He helped me through a very complicated financial situation to a result that benefitted me greatly. He is responsive, efficient, and very accommodating to my personal situation. I highly recommend him.
Christine L.
I was impressed with August Iorio's directness and clarity in explaining the claim process and how it might work out. I also appreciated his promptness in getting back to me when I had questions or other concerns. The law firm is very good at what it does.
Art H.
August Iorio was the lead on our case. His professional demeanor, partnered with his responsiveness to our questions, suggestions, and ideas made us feel as if we were a team with a common goal. He always kept us updated and informed and gave us realistic expectations which resulted in a timely...
