Maroc - STOREYS.COM - A La Une - 10/Jul 14:00

Foreclosed White Rock Project By Weststone Group Listed For Sale Over $19M Debt

While a majority of the court-ordered sales that have occurred in British Columbia are for properties located in Vancouver, the latest foreclosure proceeding shows that distressed real estate is not limited to any one location. The subject site of the foreclosure is 14990 North Bluff Road, which is also known as 16 Avenue and serves as the boundary between Surrey and White Rock.The property sits two blocks west of the Semiahmoo Shopping Centre and is currently occupied by a two-storey, 32-unit apartment building called Mauritz Manor that was originally constructed in 1967.The property is legally owned by 1119612 BC Ltd. and beneficially owned by Weststone-Banyan North Bluff Properties Limited Partnership, which is a partnership between developer Weststone Group and Banyan Pacific Financials Inc. The ForeclosureThe foreclosure proceedings were initiated in November 2023 by Cameron Stephens Mortgage Capital Ltd. and Earlston Mortgage Corp. pertaining to a loan agreement that was reached with the owners on November 24, 2021 for the principal amount of $18,000,000. Weststone Group President & CEO Brian Regehr served as a guarantor of the loan and is also listed as a respondent in the proceedings.That loan matured on August 1, 2023 and the developers failed to repay the outstanding amount. The lenders then issued a formal demand for payment on October 30, but the developers were still unable to repay the loan, prompting the lenders to initiate the foreclosure proceedings. On February 8, the Supreme Court of British Columbia granted an order nisi that confirmed the outstanding amount at $18,879,225.60 as of February 8, with interest accuring at the rate of 19.75% per annum. The order nisi also set the redemption date — the date by which the debtors can repay the outstanding amount to halt the foreclosure — at June 8. In foreclosure proceedings, the default redemption period is six months, but can be reduced if the lenders can show that there is a low probability of the debtors paying the outstanding debt.Simultaneously, the Supreme Court also granted an order for conduct of sale allowing the lenders to sell the property in order to recover the outstanding amount they are owed. That order came into effect on June 9, after the debtors failed to redeem the mortgage.STOREYS reached out to Weststone Group for comment on July 9, but has not received a response by time of publication.The PropertyThe lenders have since retained Casey Weeks, Morgan Iannone, Dylan Sohi, and Mike Grewal of Colliers to list the property. The listing came online this week with no asking price, but BC Assessment values the property at $16,994,200. Colliers notes that the property has "extensive development potential" with "plans in progress for two 6-storey woodframe buildings proposing both market condo and apartments." A City of White Rock planning report from March 2024 indicates that Weststone Group was planning 247 units across the two buildings, with one housing 100 market rental units and the other housing 147 strata units. The two buildings would also sit atop a shared three-level underground parkade. The two buildings proposed for 14990 North Bluff Road in White Rock.(Keystone Architecture / Weststone Group)The City report also notes that the plans for the site have been changed several times over the past few years. In February 2020, the plan was for a six-storey building with 116 rental units and an 18-storey building with between 186 and 195 strata units.By June 2023, the plan was then changed to one six-storey building with 147 rental units and a 30-storey building with 374 strata units. Local media reported that month that Council put the proposal on hold and the City planning report notes that the applicant subsequently withdrew their application on October 31, 2023.If a buyer is found, the sale of 14990 North Bluff Road will require final approval from the Supreme Court.