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October 30, 2023




The One, a Toronto luxury development billed as Canada’s tallest commercial condo building, has entered receivership because of unpaid debts to senior secured lenders.
But the 85-storey, $2 billion project will still proceed to completion.
Co-owned by real estate developers Sam Mizrahi and Jenny Coco, The One is less than half built at the southwest corner of Yonge Street and Bloor Street West. It has faced numerous challenges since the start of development in 2015 because of several lawsuits and delays.
The Ontario Superior Court of Justice has appointed consulting firm Alvarez & Marsal Canada Inc. as the receiver and manager of The One. The application was made by KEB Hana Bank, a South Korean commercial bank.
A notice of application showed The One holds almost $1.7 billion in debt, mostly to IGIS Asset Management Co. Ltd. and other secured lenders.
KEB Hana Bank stated in a court document, “The appointment of a receiver will bring stability and appropriate oversight to the project and can best preserve and protect the property in order to maximize recoveries from the project for the benefit of all stakeholders.”
In an affidavit, Joo Sung Yoon, the vice-president of IGIS’s global fund management team, said senior secured lenders of The One “advanced hundreds of millions of dollars to fund construction, even as the budget increased and delays mounted.”
Yoon said construction of The One was projected to be complete by December 31, 2022, at a cost of $1.4 billion, but as of October 4, 2023, the concrete columns and walls have been poured only up to the 40th floor.
The new estimated completion date is March 2025 with a new price tag of $2 billion.
The borrowers are alleged to have failed to repay agreements to KEB Hana Bank in August 2023 and September 2023, respectively, totalling $1.23 billion.
Under the receivership, Alvarez & Marsal will receive up to $315 million from KEB Hana Bank to finish The One.