Mack Real Estate Lends $315M on Florida Mixed-Use Resort


Mack Real Estate Credit Strategies has provided $315 million in financing for the construction and recapitalization of Via Mizner, a 2-million-square-foot mixed use project in Boca Raton, Fla., Commercial Observer can first report.

New York-based Lotus Capital Partners arranged the financing package on behalf of Boca Raton-based developer Penn-Florida Companies. The United States Immigration Fund (USIF) provided an additional $80 million to bring the total financing package to $395 million.

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“Mack [Real Estate] is committed to its strategy of providing financing for best in class sponsors and projects,” Mack Real Estate Managing partner and Chief Investment Officer Peter Sotoloff said in prepared remarks. “After meeting the developer and analyzing Via Mizner, it was clear that the project was an excellent fit for us.”

The complex, located at 101-105 East Camino Real in Boca Raton, is comprised of five sections: the Residences at Mandarin Oriental, an 85-unit luxury condominium building; the Mandarin Oriental Hotel & Resort, a 164-key luxury hotel that will feature two rooftop pools, holistic spa services, an athletic club and dining venues; 101 Via Mizner, a 366-unit luxury apartment building; the Shoppes at Via Mizner, which will include 60,000 square feet of retail space; Via Mizner Golf & City Club that includes a brand new golf course designed by legendary golfer Jack Nicklaus, as well as tennis courts, a fitness center, a resort-style pool, a children’s playground and dining services.

“Boca Raton is an internationally-recognized community, and now the Downtown area has emerged as an exciting place to live. The addition of the Mandarin Oriental Hotel and Residences has elevated the City’s reputation as a global destination,” Penn-Florida Companies Chairman and Chief Executive Officer Mark Gensheimer said in prepared remarks. “Via Mizner is an urban resort where you can live, shop, stay and play and will offer unrivaled luxury, standards of service and amenities to its residents, guests and members.”

The debt refinances a development loan on the partially-occupied 101 Via Mizner apartment building and provides a new, ground-up construction loan for the Mandarin Oriental Hotel & Resort plus a bridge loan for the adjacent land that the Residences at Mandarin Oriental will occupy. The site’s completion is scheduled for the beginning of 2020.

“[Arranging the financing for this project] was a herculean achievement,” Lotus’ founding partner and Chief Executive Officer, Faisal Ashraf told CO. “It was designed to accommodate three parts of the 2 million-square-foot ecosystem… all of which are in different stages of development. [The goal was] to provide flexibility, and the financing was not only large but structured to account for the many features of the project.” Ashraf added that his firm competed with a roster of “hall-of-fame” brokerage firms to advise and structure the financing for Penn-Florida.

“In Mack [Real Estate], we identified a lending partner that was able to work with us in designing a financing structure that accommodated Penn-Florida’s scale and unique vision for this project,” Faisal said in prepared remarks.

Monthly rents at the already developed apartment building, 101 Via Mizner, range from $1,639 for a studio to over $4,400 for three-bedroom units.