The builders of what is to be Canada’s tallest skyscraper have found themselves the subject of a lawsuit from tech giant Apple, according to reporting by The Globe and Mail.

The One, an 85-storey supertall tower currently under construction at the corners of Yonge and Bloor, is touted to be the tallest mixed-use structure of its kind upon completion, and had initially boasted an Apple flagship store as the primary lease for its at-grade retail -- arguably an attractive addition to Mink Mile development. However, the tech giant is now suing builder Sam Mizrahi’s company to get out of their lease agreement, first inked six years ago, citing delays and millions of dollars owed.

According to an application filed by Apple Canada Inc. on January 28 in Ontario’s Superior Court of Justice, “Apple is profoundly disappointed with Mizrahi,” and “regrets that Mizrahi’s failures have resulted in Apple having to take the step of ending its relationship with Mizrahi.” 

The OneMizrahi Developments

Apple says it is exercising its right in the lease agreement to leave without penalties if Mizrahi failed to meet certain deadlines. However, the developer contests this has been the case, and that Apple does not have the option to terminate its lease, according to a previous application filed October 2021 to prevent Apple from leaving.

Mizrahi, which has marketed The One as having a “global flagship anchor tenant” stated in the application that it 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.”

Completion Deadline Pushed Twice

According to Apple, Mizrahi has failed to complete the tower by an agreed-upon deadline of October 31, 2021; according to both parties’ court documents, this end date had already been amended twice to extend final completion from the original date of November 30, 2019. In its suit, Apple lists 26 items that it alleges were failed to be completed by the deadline that have prevented the company from taking retail occupancy, such as the building’s common areas. As a result, it’s suing for $6.9M in damages and is seeking a court order declaring the developer has indeed missed deadlines, allowing for the termination of the lease.

In addition, it is also claiming £18,600 owed in connection with an agreement between the tech giant, developer, and the building’s architect, Foster + Partners, which has designed a number of Apple’s international flagship stores. 

Mizrahi claims delays are due to external circumstances including COVID-19-induced construction delays, and an Ontario-wide plumber and pipe fitter strike in 2019. 

It remains to be seen how this suit will impact the completion of the tower, which has already erected five storeys, including the ground-level retail mezzanine. STOREYS’ request for comment to Sam Mizrahi was not answered at time of publishing.

Development Projects