After being listed for sale last year, the sprawling Grand Park project in Markham, Ontario is now under receivership, according to filings in Ontario Superior Court.
The subject site of the project is a 14-lot land assembly consisting of 36, 38, 40, 42, 44, 46, and 48 Steeles Avenue East, plus 37, 39, 41, 43, 45, 47, and 49 Highland Park Boulevard. The 2.3-acre site is located on the eastern side of Dudley Avenue, about two blocks northeast from Centerpoint Mall.
The developer is Zonix, which has historically been a developer of low-density projects and is based out of 44 Steeles Avenue East, according to the company’s website. The Steeles properties are held under Zonix Homes Inc. while the Highland Park properties are held under Zonix Dudley Inc.
For the site, Zonix was previously planning 533 residential units across a 27-storey tower and a six-storey building, before sizing the proposal up to 1,060 residential units across a 40-storey tower and a 44-storey tower.
For the project, Zonix secured financing from Toronto-based real estate lender Cameron Stephens, with the two sides reaching a loan agreement in February 2024 for the principal amount of $24,000,000, split between an initial advance of $21,457,000 to refinance existing debt, and a secondary advance of $2,543,000 to fund the acquisition of 45 Highland Park Boulevard.
The Refinancing
According to Cameron Stephens, Zonix defaulted on the loan around April 2025 when the loan matured and the loan was not repaid. The lender then issued a formal demand for payment in May 2025, after which the two sides entered into a forbearance agreement that delayed enforcement until June 13, 2025, to give the developer the opportunity to refinance the loan.
Following the forbearance period, Zonix asked for a further forbearance and requested they subordinate their first-ranking mortgage to facilitate a refinancing transaction with Vector Financial, which would see at least $21,300,000 paid to Cameron Stephens, leaving a residual principal of $3,370,803 that would accrue interest at 15% per annum.
The three parties signed the subordination agreement on July 24, 2025, and Cameron Stephens also agreed to not enforce on their security unless it had provided at least 90 days notice to Vector. Cameron Stephens then received a payment of $21,331,563.20.
The forbearance was then extended to April 30, 2026, by which Zonix was required to repay the residual debt, but it failed to do so, thus defaulting on the forbearance agreement and loan. Cameron Stephens then issued a demand for payment in May 2026, claiming a debt of $4,127,781.92 with interest accruing at a daily rate of $1,692.79.
According to Cameron Stephens, Vector Financial also issued demands for payment in May 2026 after the borrowers failed to make required monthly interest payments. Vector was owed $24,314,359.30 as of May 4, 2026, with interest accruing at a daily rate of $7,611.81.
Cameron Stephens then initiated a receivership proceeding on May 28.
The Pending Sale
The project planned for 36-48 Steeles Avenue East and 37-49 Highland Park Boulevard in Markham. (Arcadis, Zonix Homes)
Concurrently, attempts were being made to sell the 36-48 Steeles Avenue East and 37-49 Highland Park Boulevard site, which was listed for sale last summer, as previously reported by STOREYS.
According to court documents, an agreement was signed on April 27, 2026 to sell the properties to 17767749 Canada Inc. — who would then assign the purchase to the De Shan Foundation Inc. — for $31,000,000, which was planning to redevelop the site into a long-term care facility. Court filings include a letter dated August 26 from Councillor of Ward 5 Andrew Keyes in support of the plan.
However, the agreement included a closing credit of $1,200,000 to the purchaser for costs and legal fees, meaning the effective purchase price was $29,800,000, which was not enough to repay both debts in full when including interest up to the expected closing date of the transaction — November 9.
The original due diligence period was scheduled to expire on June 17, but was extended to August 19, on which Zonix said the purchaser was working with BMO to secure financing. Because of the pending transaction, the hearing for Cameron Stephen’s receivership application kept getting pushed back.
The purchase agreement included a condition that the purchaser would secure financing by October 8. On that day, the purchaser requested a two-week extension, while maintaining the closing date, but the request was denied. In an affidavit dated October 9, Zonix President Reza Esfahany said “I completely understand and appreciate the frustration that is being faced by the Lenders. But this is not a situation where the Respondents have been ‘dragging their feet.’”
The Receivership
Cameron Stephens, however, had waited long enough.
“In light of the existing shortfall and the additional costs that remain to be quantified, there is a substantial risk that the Lenders will suffer a loss even if the APS ultimately closes,” said Cameron Stephens in filing dated October 13. “The anticipated deficiency will continue to increase the longer closing is delayed as legal fees, interest, and other enforcement costs continue to accrue.”
“Even assuming the [purchase agreement] ultimately closes on November 9, 2026, there remains no evidence that the Purchaser has obtained the necessary financing or that the transaction is capable of closing within the proposed timeframe. […] The Respondents have now had several months and three adjournments to complete a refinancing or sale transaction sufficient to satisfy the secured indebtedness. No payments have been made to Cameron Stephens during that period, interest continues to accrue, and the anticipated shortfall continues to grow.”
On October 15, the Ontario Superior Court granted the receivership order. There have been no further updates since then; it remains to be seen whether the sale will close as scheduled.
