A judge has ordered that another 91原创 property owned by a financially troubled development firm be sold to pay creditors.

On Sept. 5, a B.C. judge ordered that Atrium Mortgage Investment Corporation can sell off the lots at 3338 and 3352 200 Street in Brookswood, to recoup the $13.1 million allegedly owed to Atrium by Quarry Rock Developments.

Quarry Rock is a regional developer that had multiple properties in 91原创, Surrey, and the Tri-Cities under development in recent years. The firm ran into financial issues caused by rising interest rates and development costs, and has since sold some of its properties, or had them ordered sold by the courts to pay outstanding mortgage debts.

The Brookswood properties were designated for townhouses and local commercial development under the Booth Neighbourhood Plan.

According to court documents, Atrium loaned Quarry Rock, which was doing business as QRD (Brookswood) for this project, $11.5 million in February 2021. That loan increased to $12.7 million, and the interest rate was increased, in April 2022.

The petition to the court noted that Overland Capital and Kaiser Landen Projects had also issued mortgages on the same property. 

In a separate filing, Overland noted that it was owed $3.8 million on one mortgage, with an interest rate of 13.5 per cent, and $5.1 million on another mortgage, with an interest rate of 15 per cent, as of last November.

In response to Atrium's petition, last year lawyers for Quarry Rock filed a response, arguing that they had enough equity in the site to pay back all their creditors.

The site would be worth $66.8 million "if 100% complete," said the Quarry Rock response.

However, last December, a judge granted a six-month redemption period and order of foreclosure against Quarry Rock.

Quarry Rock could have reclaimed the properties by paying off the total debt owing between then and June of this year.

On Aug. 29, Atrium was back before a judge, with the money still owing. They requested permission to sell the properties, which was granted on Sept. 5.

Quarry Rock did not have a lawyer representing them at the final hearing.

The Brookswood sites are currently for sale, listed for $19.5 million.

Quarry Rock also recently lost an appeal of the sale of a partly complete 87-unit 91原创 townhouse development, called The Willoughby. The project was sold for $35 million to a new developer, Redekop Ferrario Properties. 

Quarry Rock's owners had attempted to arrange an alternate sale for $64 million to a not-for-profit developer backed by the provincial BC Builds program, but the Court of Appeal judges found that there had been little progress firming up the details of that sale over the summer. The sale to Redekop was allowed to continue.

Quarry Rock has also sold other potential development sites around 91原创 over the past year, including a site on the one-way section of Fraser Highway in downtown 91原创, and the iconic brick Federal Building on Douglas Crescent and 204 Street.

The 91原创 Advanced Times has reached out to Quarry Rock for comment.