Receiver appointed over six Justin Lee properties in Toronto

Six Toronto properties owned by Justin Lee Levine, Justin Lee Holdings Ltd., Junction Vesuvio Inc. and JL Chase Holdings Inc. were placed into receivership on July 24, 2026, on application by secured lender Extend Financial Ltd., owed approximately $16.2 million.

The order covers 3038-3042 Dundas Street West, 3039 Dundas Street West, 1116 College Street and 3010, 3014 and 3016 Dundas Street West. Levine owns 3038 Dundas and is the sole director of the three corporate respondents. Justin Lee Holdings owns 3039 Dundas, JL Chase Holdings owns 1116 College, and Junction Vesuvio owns the properties at 3010, 3014 and 3016 Dundas. Levine also personally guaranteed the loans made to the corporate borrowers.

The portfolio consists primarily of mixed-use properties in Toronto’s west end. The properties at 3038 Dundas, 3039 Dundas and 1116 College contain ground-floor retail or commercial space with residential or other space above. The remaining Dundas properties contain street-level commercial occupancies, while 3016 Dundas also contains residential space. Tenants include a hair salon, café, retail boutique, personal-care businesses, bakery and food-service operators, and pharmacy or health-service businesses.

Extend advanced five facilities with aggregate original principal of approximately $15.25 million between January and June 2025, secured by mortgages against the properties. The lender’s application materials placed the amount outstanding at approximately $16.16 million as of April 16, excluding further interest, legal fees and enforcement costs.

Extend’s financing included two loans against 3038 Dundas, comprising a $2.1 million facility advanced in January 2025 and a $2.8 million facility advanced in June 2025 to refinance an existing TD Bank mortgage. It also advanced $1.25 million against 3039 Dundas, $2.1 million against 1116 College and $7 million against the properties at 3010, 3014 and 3016 Dundas.

Extend holds first-ranking mortgages over the properties other than 3039 Dundas, where its mortgage ranks behind a Ukrainian Credit Union Limited charge registered in January 2024 with original principal of $5.07 million. The record identified no other secured creditors registered on title to the other properties, although several parties had made personal property security registrations against the respondents.

The financial problems arose from defaults under all five facilities, including failures to make monthly interest payments. Extend demanded repayment and delivered notices of intention to enforce security on April 16. Its payout statements recorded approximately $2.34 million owing under the January 2025 loan, $2.96 million under the June 2025 loan, $1.3 million under the 3039 Dundas loan, $2.2 million under the 1116 College loan and $7.36 million under the 3010-3016 Dundas loan. Those amounts excluded continuing interest, legal fees and enforcement expenses.

The receivership application was initially scheduled for June 16 but was adjourned on consent until July 8 to allow the borrowers to make specified payments. The borrowers agreed that they would not oppose a receiver if the payments were not made. The proceeding was adjourned again on July 8, on terms that it would proceed on consent on July 24 unless the parties reached an agreement. No agreement was completed.

Albert Gelman is the receiver. Counsel includes Robins Appleby for Extend and WeirFoulds for Levine and the corporate respondents.