Penn-Florida Boosts Mandarin Oriental Construction Loan to $270M
By Julia Echikson August 8, 2023 5:22 pm
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Penn-Florida Companies has upped a construction loan for The Residences at Mandarin Oriental condo building in Boca Raton, Fla. by $55 million, bringing the total construction financing to $270 million.
The luxury condo tower, part of the larger Via Mizner mixed-use development, has been under construction since 2019, according to property records. That year, Madison Realty Capital provided a $215 million construction loan for the 86-unit project, and has now funneled an additional $55 million to the developers, mortgage documents show.
In addition, the New York-based lender had provided two mezzanine loans. The first, which dates back to 2019, amounts to $10 million, according to a source with knowledge of the arrangement. The second, which Penn-Florida secured this year, amounts to $22.5 million.
The debt, in total, comes to $302.5 million. A representative for the Penn-Florida Companies did not immediately provide comment.
The 7-acre Via Mizner, located along Federal Highway, also features a luxury rental building, a Mandarin Oriental hotel, a golf course, and a retail component.
The Boca Raton-based developer completed the 366-unit rental building, called 101 Via Mizner, in 2018. A sky bridge will connect the 164-key hotel and The Residences at 105 E Camino Real, where at least half of the units have sold.
All three buildings will be elevated above a mall, dubbed The Shoppes at Via Mizner, which is set to span 60,000 square feet. Further west at 6200 Boca Del Mar Drive, the development is home to a private 18-hole golf course, designed by sport legend Jack Nicklaus.
In 2021, Penn-Florida Companies had secured $195 million from Blackstone to refinance the rental building and $140 million as a construction loan from Canada-based Romspen Investment Corporation for the hotel. Four years prior, the Boca Raton-based developer had scored $398 million in financing, according to the South Florida Business Journal.
Julia Echikson can be reached at jechikson@commercialobserver.com.
Update: The story was amended to add references about the mezzanine loans.
