Apple is threatening to kill flagship retail store project in Canada over construction delays at “The One,” a tall skyscraper currently under construction in Toronto, Ontario, Canada which, when completed, will be the tallest residential building in Canada at 85 stories.
The tech giant has told Mizrahi Developments it may exercise an option in the lease agreement that allegedly allows the retailer to exit without penalties if the developer misses certain deadlines, according to court documents filed by Mizrahi in Ontario’s Superior Court of Justice on Oct. 5, 2021.
Mizrahi says it has not missed deadlines and Apple no longer has the option to terminate the lease. The developer is seeking a court order to stop the retailer from leaving. In its court submission, Mizrahi said it will “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.”
Getting Apple to establish its flagship Toronto store on the ground floor was a coup for Mr. Mizrahi. Apple stores are magnets for consumers and would have attracted throngs of people to the building and the neighbourhood.
Like other commercial real estate projects, The One has suffered from COVID-19 pandemic restrictions that slowed construction. As well, Mizrahi said it had to wait for Apple to choose a design for the storefront glass and had to deal with other delays out of its control, including a provincewide plumbers’ strike in 2019.
Mizrahi said the entire building has been designed and built to be specifically tailored to Apple’s store.
The tech company’s lease was for more than 15,000 square feet, including more than 9,000 square feet on the ground floor… Apple’s space is surrounded by seven layers of glass with no breaks. That was made up of 34 panels custom fabricated from integrated units at an average cost of $400,000 per panel, in the signature and iconic style of flagship Apple stores around the world, Mizrahi stated in its court filings.
MacDailyNews Take: Dead.
[UPDATE 7:15pm ET: Updated Take.]
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!