Apple ‘Disappointed’ With Mizrahi Developments, Sues to Terminate Toronto Condo Lease
Apple is suing Sam Mizrahi’s Toronto-based real estate company Mizrahi Developments and is terminating its lease for the long-planned condo in the city dubbed The One, according to The Globe and Mail.
The iPhone maker is reportedly seeking millions of dollars in damages as a part of its lawsuit as the development of what’s been called the tallest commercial condo building in Canada has been tumultuous. Apple originally signed the first lease agreement with Mizrahi Developments on March 23, 2016. The agreement was then amended twice, to push the delivery date from Nov. 30, 2019, to Oct. 31, 2021.
Apple sought to bring Toronto’s flagship Apple Store to the building. However, the development of the 85-storey building is still ongoing and conflicts have begun to boil over.
“Apple is profoundly disappointed with Mizrahi,” Apple Canada Inc. said in application, filed on Jan. 28 in Ontario’s Superior Court of Justice.
“Apple regrets that Mizrahi’s failures have resulted in Apple having to take the step of ending its relationship with Mizrahi,” Apple said in the filing.
Apple’s presence within The One condo would have likely been a major draw, especially as the building sits at the busy corner of Yonge and Bloor in Toronto. However, even though Apple did sign a lease agreement, the company reportedly can step away without any penalties if Mizrahi Developments misses its deadlines.
Mizrahi submitted a counter legal application in an attempt to stop Apple from leaving. Within the application, Mizrahi stated that he would “suffer irreparable harm from losing a world-class tenant that was intended to be an anchor tenant for a world-class property, which is a loss that cannot be compensated in damages.”
Apple is seeking $6.9 million in damages due to the delay. The company is also seeking a court order stating that Mizrahi missed deadlines and that it is allowed to terminate its lease without repercussions. Apple is also wishing to be granted an additional £18,600 ($29,404 CAD) in regards to an agreement made between itself, Mizrahi and London-based architect Foster + Partners.
As of the time of writing, five storeys of the 85 storeys of The One have been built. Window spaces for the retail spaces on the ground floor are also in place and covered for its future tenants. Mizrahi believes the delays were out of its control and can be attributed to COVID-19 and a plumber strike that occurred in 2019. Apple disputes this and believes the delays are “the result of Mizrahi’s inability to manage the project,” according to its application.
Neither company has publically commented on the matter at hand.