Report: Stalled Pacific City Development Gets New OwnerTuesday, July 6, 2010
San Francisco hedge fund Farallon Capital Management LLC has taken over as the principal owner of the long-stalled Pacific City development project in Huntington Beach, according to a local report.
Newport Beach’s Makar Properties LLC, the initial developer of the 30-acre housing, hotel and retail development along Pacific Coast Highway, has transferred a $129 million loan tied to the project, along with ownership of the property, to Farallon Capital, according to the Surf City Voice.
Makar’s role in the project going forward, if any, is unclear. It is possible the developer still could be paid a fee for managing the project during its construction, or perhaps retain a minority ownership stake in Pacific City.
Farallon Capital long been has been one of Makar’s main financiers. The two previously owned the St. Regis Monarch Beach Resort, before the Dana Point luxury resort was turned over to lenders last year.
The $129 million loan for the Pacific City project is said to be held by Canada's Cadim Note Inc. The transfer in ownership took place in March, according to the Surf City Voice.
Pacific City, first approved in 2004, is slated to include condominiums, shops, a hotel and restaurants. So far, construction at the long-delayed site has primarily consisted of early work for an underground parking structure.
No timeline has been given for when work at Pacific City could begin again in earnest.