Apple has pulled out of a much-delayed retail/residential project in Toronto. Apple’s pulling out of the project has left the project, to be known as “The One,” without an anchor tenant.
The project is being built by Mizrahi Developments and it has been under construction since 2016. The mixed residential/retail project is designed to be an 85-story skyscraper that includes a significant retail area on the lower floors and is located at the corner of Yonge and Bloor.
It was announced in 2018 that Apple would open a 9,000-square-foot retail store to act as an anchor for the complex.
iPhone in Canada reported on Friday that Apple threatened to pull out of the project back in February if certain landmarks and conditions were not met to its satisfaction. Apple has now done so, after the project fell into bankruptcy because of a massive $1.6 billion dollar debt, and construction delays.
“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
Mizrahi Developments reportedly informed Apple in December 2020 that the project would be delayed to October 31, 2021, thanks to the coronavirus pandemic and a 2019 plumbers’ strike.
Apple then told Mizrahi that it would be terminating its lease. Apple’s lease was for over 15,000 square feet, which included in excess of 9,000 square feet for retail on the project’s ground floor. Mizrahi Developments then sought a court order to prevent Apple from pulling out of the project, claiming that it had not missed the deadlines.
Apple was seeking almost $30,000 to compensate for an agreement made with its long-term designers Foster + Partners, and another $6.9 million in damages.
A deal has since been made with Apple, and Mizrahi Developments will pay Apple’s design costs, estimated to be $6.24 million Canadian ($4.87 million US).
The Apple retail store was designed to incorporate even layers of glass with no breaks, constructed from 34 custom-fabricated panels costing over $300,000 each.
Mizrahi Developments’ court filings had claimed the developer was delayed as it was waiting for Apple to choose a design for its storefront glass.
