Mizrahi (128 Hazelton) Inc. and Mizrahi 128 Hazelton Retail Inc., and Sam M (180 SAW) LP Inc. and Sam M (180 SAW) Inc., related Ontario real estate development companies connected through their principal Sam Mizrahi, had certain of their real properties and other assets placed in receivership on June 4 on application by Constantine Enterprises Inc.

The companies are developing condominium projects located on Hazelton Avenue (“Hazelton”) and Steeles Avenue West (“SAW”), both in Toronto.

Hazelton is made up of a nearly complete nine-story, 20-unit luxury condominium development project located in Toronto’s Yorkville neighbourhood including commercial retail space on the ground floor and three levels of underground parking. SAW is currently in the development phase with rezoning being pursued to convert the property from its current use as a large plaza to its new intended use as a condominium building.

Constantine is owed over $50 million on Hazelton and nearly $30 million on SAW. It has lost confidence in the Mizrahi Group, including due to their failure to repay the loans despite having a considerable amount of time to do so, including since the issuance of demands, as well as a recent law suit brought by the companies alleging that Constantine and certain of its directors took steps on the Hazelton project to prevent the indebtedness from being paid.

KSV is the receiver.

Counsel is Cassels for Constantine, Norton Rose Fulbright for the receiver, Cozen O’Connor for the companies, Morse Shannon for Sam Mizrahi and Shibley Righton for TSCC 2967.