Apple Exits Toronto’s ‘The One’ Project Which is Now in Receivership
The One under construction in July 2021
Apple has terminated its lease for retail space in Toronto’s troubled ‘The One’ development, according to newly filed court documents. The luxury condo and retail project, located at Yonge and Bloor Streets, was pushed into receivership due to construction delays and a debt of $1.6 billion.
“The Project recently lost its anchor retail tenant, and no replacement anchor tenant has been secured,” stated the court documents filed by lender KEB Hana Bank, a South Korea-based financial institution, reports CityNews, confirming Apple is officially out of The One.
The project, developed by Sam Mizrahi and Jenny Coco, was initially slated for completion by December 2022 at a cost of $1.4 billion. However, construction has only reached the 40th floor, with a new projected completion date of March 2025 and an expected overrun of $600 million.
“Apple is profoundly disappointed with Mizrahi,” said Apple Canada back in an application filed on January 28, 2022, in Ontario’s Superior Court of Justice. Apple was seeking $6.9 million in damages and had also filed for a court order to confirm that it can terminate its lease without repercussions due to missed deadlines by Mizrahi Developments.
Mizrahi submitted a counter legal application, stating that the loss of Apple as an anchor tenant would cause “irreparable harm” that cannot be compensated in damages. The developer remains the general contractor on the project.
A FAQ on the Alvarez and Marsal Canada website cited economic headwinds, including the COVID-19 pandemic and supply chain disruptions, as contributing factors to the project’s delays and cost overruns.
Apple originally signed the lease agreement with Mizrahi Developments on March 23, 2016, aiming to bring Toronto’s flagship Apple Store to the building. The agreement was amended twice, pushing the delivery date from Nov. 30, 2019, to Oct. 31, 2021. Apple was also seeking an additional £18,600 ($29,404 CAD) in relation to an agreement made with Mizrahi and London-based architect Foster + Partners.
The planned flagship Apple Store at The One looked like it was going to be a nice location, but that is all a pipe dream now. The location had massive glass panels installed that were over 7 feet wide and 37 feet high, with a thickness of over 10cm each.