EverHome Condo Project in Markham Faces Insolvency and Receivership

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The EverHome condo project by The Sher Corporation in Markham is now under receivership following significant financial and safety issues.

A recent development in Ontario has highlighted the growing trend of construction projects facing insolvency, with the EverHome project by The Sher Corporation now under receivership. Located at 9704 McCowan Road in Markham, near the intersection with Bur Oak Avenue and close to the Williamstown Plaza shopping centre, the project aimed to deliver a mid-rise condominium featuring 131 units distributed across three buildings, along with an amenity structure.
The Sher Corporation, operating through its subsidiaries Sher Markham Inc. and Sher Holdings Inc., secured a substantial financing package from Meridian Credit Union in July 2022. This included a construction demand facility worth $57,251,849.81, accruing interest at Meridian’s Prime Rate plus 1.75% per annum, and a letters of credit facility amounting to $1,100,590.40. As of July 2026, 103 of the 131 units, representing 78.6%, had been pre-sold, indicating strong market interest. However, construction faced severe setbacks, halting in May 2026 when the project was approximately 86% complete.
The suspension of work was attributed to multiple serious safety concerns flagged by the construction manager, Grove Inc., who raised issues such as fire safety violations and unsafe access conditions. These deficiencies were brought to the attention of Shakeel Walji, the President of The Sher Corporation, who also guaranteed the loan from Meridian. Following the resignation of Grove Inc. due to these safety issues, Eastpointe Corp. was retained in July 2026 as the new construction manager to reassess the project and develop a revised budget. This assessment revealed that the estimated cost to complete the project had escalated to around $17.3 million, a figure likely to be higher now.
Despite these challenges, The Sher Corporation faced further difficulties in meeting the financial obligations tied to the project. Meridian Credit Union reported that the developer defaulted on the loan agreement multiple times, including failures to provide necessary financial documentation and to repay amounts due by September 2025 and March 2026. In August 2026, Meridian issued a formal demand for payment, which the developer was unable to meet. Additional complications arose when it was discovered that The Sher Corporation had unpaid insurance premiums totaling $58,650.48, which Meridian settled in September. By mid-September 2026, Meridian claimed that it was owed $57,731,133.87, with interest accumulating, and noted that the developer had allowed 21 liens totaling $11,422,954.19 to be registered against the property.
In an effort to address the financial turmoil, Walji sought creditor protection under the federal Companies’ Creditors Arrangement Act (CCAA) and secured $21,150,000 in debtor-in-possession (DIP) financing from Safe Harbour Global Capital. This funding was intended to bridge the immediate financial gap hindering the project’s completion, preserving the value of the work already done. However, Meridian's receivership application was scheduled for court consideration on October 14, 2026.
During the hearing, Judge Sean Dunphy ultimately sided with Meridian, expressing skepticism regarding the viability of the proposed CCAA option and indicating that further delays could exacerbate the situation. The judge’s remarks underscored the urgency of the receivership process, leading to the court granting Meridian’s application, thereby placing the project under receivership as of October 14, 2026. This case exemplifies the increasing challenges faced by construction projects in Ontario, particularly regarding financial management and safety compliance.

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