Peebles transfers Pacifica quarry to its lender


Posted by
Wed, March 3, 2010


The Rockaway Quarry, the centerpiece of a development battle in 2008, has been transferred from Peebles Corp to an affiliate of its lender, reports Julia Scott in the County Times.

The 87-acre Rockaway Quarry has been sold to an unidentified affiliate of Ambit Funding LLC, a Pennsylvania-based company that originally loaned former quarry owner The Peebles Corp. $16 million to purchase and develop the property, according to an announcement by Peebles. Peebles bought the quarry for $7.5 million in 2005 from another company that had tried and failed to build a mixed-use housing and retail development in that location.

Florida-based Peebles likewise failed to convince a majority of Pacifica voters in 2008 of the value of its proposed 355-unit mixed housing plan, which would also have included a luxury hotel and ample retail space — a new downtown along Highway 1, steps away from the ocean and several favorite beaches. [...]

Unfortunately, Rockaway Quarry was not a hot ticket among commercial developers in the sliding economy. [Peebles Corp. Senior Vice President Daniel] Grimm said it had three or four offers, all of which were far below the $25 million his company was seeking. The quarry was most recently appraised at $85 million. "We were unable to sell it for a price to satisfy both parties, so we had to have another discussion," Grimm said. "We reverted back to our positions, which was a dispute, and agreed to sell it to an affiliate of the lender. ... I know they gave us a good deal, so we took it."

The terms of the transfer, and Ambit’s plans for the property, are unknown.