A B.C. court ordered the Brookswood development sale to recover the $13.1 million that Quarry Rock Developments owes Atrium Mortgage Investment Corporation. On September 5, the judge ruled that Quarry Rock must sell the properties at 3338 and 3352 200 Street in Brookswood to settle the debt. The regional developer, Quarry Rock, has struggled with severe financial challenges, largely due to rising interest rates and escalating construction costs.
Quarry Rock had planned to build townhouses and local commercial spaces on these properties under the Booth Neighbourhood Plan. Initially, the site was appraised at $66.8 million upon project completion. However, due to their financial struggles, Quarry Rock couldn’t advance the development, which triggered the Brookswood development sale. The property is now listed for $19.5 million, significantly lower than its potential value.
Quarry Rock, which had multiple properties in Langley, Surrey, and the Tri-Cities, has struggled with debt for over a year. Atrium loaned Quarry Rock $11.5 million in 2021, which increased to $12.7 million by 2022. Despite the company’s attempts to argue that they had sufficient equity, they failed to pay off their debts during the court-granted redemption period, which ended in June 2023.
This is not the first major setback for Quarry Rock. Earlier this year, they lost control of The Willoughby, an 87-unit townhouse project. That sold for $35 million to Redekop Ferrario Properties. Quarry Rock has also sold other Langley properties. Such as a Fraser Highway site and the Federal Building on Douglas Crescent.
For more updates, visit City of Langley or check out the Langley Real Estate Market Report.