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Penn-Florida scores $300M loan for Mandarin Oriental project in Boca Raton

Madison Realty Capital provided latest refi and construction loan from 2019

Penn-Florida Gets $300M Loan for Mandarin Oriental Boca Raton
Penn-Florida's Mark Gensheimer and Madison Realty Capital's Josh Zegen with a rendering of Residences at Mandarin Oriental in Boca Raton (Penn-Florida, LinkedIn, Mandarin Oriental Residences)

Penn-Florida Companies scored a $302.5 million loan for the Residences at Mandarin Oriental development in Boca Raton, marking the latest refinancing for the project, The Real Deal has learned. 

New York-based Madison Realty Capital, led by Josh Zegen, is providing the financing for the Via Mizner project at 105 East Camilo Real, according to a source. It replaces the $225 million loan Madison provided in 2019. The refinancing adds to a group of large loans that developers have secured in recent months. 

A Newmark team led by Anthony Orso and Henry Stimler arranged the loan. The financing is for the 86-unit Mandarin Oriental-branded condo portion. The condos are about 90 percent presold.

Penn-Florida, led by president Mark Gensheimer, completed the first phase, a 366-unit apartment building, in 2018. The project also calls for a 164-room Mandarin Oriental hotel, the Via Mizner Golf and City Club, and 60,000 square feet of retail space that will make up the Shoppes at Via Mizner. Jack Nicklaus designed the golf club. 

The delayed development was originally expected to be completed in 2020. 

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Construction on Via Mizner began in 2015. In 2017, Penn-Florida closed on $398 million in financing, led by New York-based Mack Real Estate Credit Strategies. That included about $80 million from the U.S. Immigration Fund, an EB-5 regional center operator, according to a press release. In 2019, it scored the $225 million loan from Madison. And in 2021, the developer secured $335 million in partial refinancing from Blackstone Mortgage Trust and Toronto-based Romspen Investment Corp. 

The developer bought the Via Mizner site for $19 million in 2014. 

Despite high interest rates and pullback from major banks, some developers have been able to lock in large loans. In July, Witkoff and Monroe Capital secured $430 million in construction financing for their Shore Club project in Miami Beach, one of the largest construction loans for a condo development ever recorded in South Florida. J.P. Morgan provided the financing. 

Madison Realty also has been active in the region. In May, the firm provided a $340 million loan to Dan Catalfumo’s Catalfumo Companies for the planned Ritz-Carlton Residences, Palm Beach Gardens. 
The largest condo construction loan in South Florida came from Bank OZK in 2018. The Trump Group, led by brothers Jules and Eddie Trump, who are of no relation to the former president, secured a $558 million loan for the Estates at Acqualina luxury condo development in Sunny Isles Beach.

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Boca RatonConstruction LoansMandarin OrientalNewmarkPalm Beach County