A vacant Cathedraltown property approved for a mid-rise condominium building will be marketed by a court-appointed receiver after its owner failed to repay a mortgage debt of approximately $4.5 million.

The 1.48-acre parcel at 100 Cathedral High Street in Markham was placed under receivership on July 9, according to Insolvency Insider Canada. Justice Myers appointed AlixPartners Restructuring, Inc. to oversee the land, related personal property and proceeds.

The order is limited to those assets. It does not cover the neighbouring property at 101 Cathedral High Street or other Cathedraltown lands owned by King David Inc. that are already under a separate receivership.

First-ranking secured lender CC2 (100) GP Inc. applied for the appointment. It acquired the mortgage and related security on April 21, 2026, after the loan had matured and an agreement delaying enforcement had expired.

Loan remained unpaid after enforcement delay

The financing originated with a September 18, 2023 commitment from HF Markham (CC2) LP for a $5-million facility with a 13-month term. Its security included a first mortgage on the land, a site-specific general security agreement covering related personal property and a guarantee dated October 17, 2023.

For the first 12 months, the loan carried annual interest at the greater of 12.25 per cent or CIBC’s prime rate plus 5.05 percentage points. The rate then rose to the greater of 20.25 per cent or prime plus 13.05 percentage points.

The loan matured on December 1, 2024, without repayment. On January 16, 2025, the original lender demanded $5,139,127 and issued notice of its intention to enforce the security.

A February 4, 2025 forbearance agreement delayed enforcement until December 1, 2025. King David acknowledged approximately $5.18 million in debt as of February 1, along with its repayment obligations and the validity of the lender’s security.

That agreement expired without repayment. By April 30, 2026, the outstanding balance had fallen to approximately $4.5 million, excluding legal fees and disbursements.

The balance included $4.05 million in principal, plus accrued interest, default fees and estimated planning costs. Interest continued to accumulate after April 30.

Other properties remain outside the order

The parcel also carries a second mortgage held by Romandale Farms Limited, with a registered principal amount of $3.5 million.

King David’s additional Cathedraltown properties across the street entered a separate receivership in December 2023, with TDB appointed receiver. Justice Steele approved a stalking horse sale process for those lands in September 2025, and a sale was approved in April 2026.

The July order expressly leaves those properties outside AlixPartners’ mandate, keeping the two receiverships separate.