The EverHome mid-rise condo project in Markham has entered receivership following a construction halt in May 2026. Developed by The Sher Corporation,the 131-unit site at 9704 McCowan Road is facing massive debt and safety-related shutdowns.
The growing list of insolvent Ontario developments nearing the finish line
The collapse of the EverHome project is not an isolated incident but part of a troubling trend of Ontario developments struggling to reach completion. As reported in Ontario Superior Court filings, this mid-rise development is the latest in an extensive list of projects that have become insolvent despite being structurally advanced. this pattern suggests a tightening squeeze on developers who find themselves unable to bridge the gap between high pre-sale numbers and the actual cost of finishing construction in a high-interest environment.
For the EverHome site, the situation is particularly precarious because the project was already approximately 86% complete before work stopped. This means that while the building envelopes were nearly finished, the interior works remained incomplete, leaving a significant amount of capital tied up in a stalled asset.
Serious safety deficiencies and $11.4 million in registered liens
The halt in construction at 9704 McCowan Road was triggered by more than just financial strain; it was driven by critical site failures. As Meridian Credit Union reported in its application, the project's construction manager resigned after raising numerous serious safety deficiencies to Shakeel Walji, the President of The Sher Corporation.. These issues included fire safety concerns, unsafe stair access, and various non-compliance items that required immediate corrective action.
The financial instability of The Sher Corporation is further evidenced by a mounting pile of legal and tax obligations. Beyond the roughly $57.7 million owed to Meridian Credit Union, the property is currently burdened by 21 registered liens totaling $11,422,954.19. Additionally, the developer failed to pay $58,650.48 in property taxes, highlighting a systemic breakdown in the project's fiscal management.
Judge Sean Dunphy rejects the $21 million DIP financing plan
In a desperate attempt to avoid receivership, Shakeel Walji sought creditor protection under the Companies' Creditors Arrangement Act (CCAA). The Sher Corporation claimed it had secured $21,150,000 in debtor-in-possession (DIP) financing from an unnamed third party to fund the completion of the EverHome project. Walji argued this capital was necessary to preserve the value of the work already completed and prevent further value destruction.
However, the court was not convinced by the developer's proposed rescue plan. Judge Sean Dunphy denied the request for an adjournment to finalize the CCAA application, ruling that there was no viable option available. the judge noted that the lender's preference for immediate receivership spoke volumes about the speculative and unreliable nature of the proposed DIP financing.
Who is the unnamed third party offering $21.15 million?
The legal battle leaves several critical questions unanswered for the 103 residents who have already pre-sold their units at EverHome. First, the identity of the unnamed third party proviidng the $21.15 million in DIP financing remains a mystery, raising questions about the legitimacy and stability of that capital. Second, it remains unclear how the $17.3 million estimated completion cost—a figure provided by consultant Quantum Murray—will be reconciled with the massive $57.7 million debt owed to Meridian Credit Union.
Finally, the status of the 78.6% of units that were pre-sold remains in a state of high uncertainty. With the project now moving toward receivership, the legal path for these individual buyers to secure their homes or recover their deposits is entirely unknown.
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