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Penn-Florida Secures $302.5 Million Loan for Boca Raton’s Mandarin Oriental Project

Presenting Mark Gensheimer of Penn-Florida and Josh Zegen of Madison Realty Capital, alongside a captivating depiction of the Residences at Mandarin Oriental in Boca Raton. (Image Source: Penn-Florida LinkedIn, Mandarin Oriental Residences)

In an exciting development for the luxurious Residences at Mandarin Oriental in Boca Raton, Penn-Florida Companies has successfully secured a substantial $302.5 million loan for the project, marking a significant milestone in its journey. This funding coup comes as Madison Realty Capital, a prominent New York-based firm led by the visionary Josh Zegen, steps up to provide the financial backing. This move comes as a replacement for the $225 million loan that Madison Realty Capital initially extended in 2019. The latest refinancing adds to the impressive list of substantial loans that accomplished developers have managed to secure in recent times.

Sources reveal that Madison Realty Capital’s involvement centers around the Via Mizner project, an elegant undertaking situated at 105 East Camilo Real. This innovative project stands as a testament to the developers’ commitment to excellence and luxury. The endeavor encompasses the creation of an 86-unit condominium complex under the esteemed Mandarin Oriental brand. With a remarkable 90 percent of these opulent condos already presold, the demand and anticipation for this premier living space are clearly evident.

The loan arrangement was expertly orchestrated by a distinguished team from Newmark, with Anthony Orso and Henry Stimler leading the way. This funding is earmarked specifically for the condominium segment of the project, reinforcing the developers’ vision for a truly exceptional living experience. As the project progresses, the community eagerly awaits the unveiling of these exceptional residences.

Penn-Florida Companies, under the astute leadership of President Mark Gensheimer, has already completed the first phase of this groundbreaking project. The 366-unit apartment building, completed in 2018, was just the beginning of the grand design. The Residences at Mandarin Oriental project encompasses more than just residential spaces; it also boasts a 164-room Mandarin Oriental hotel, the Via Mizner Golf and City Club, and an impressive 60,000 square feet of retail space, collectively known as the Shoppes at Via Mizner. An impressive highlight of this venture is the golf club designed by none other than Jack Nicklaus himself. Construction efforts for Via Mizner were set in motion back in 2015, and the journey towards its realization has been marked by key financial milestones.

The acquisition of the Via Mizner site in 2014 for $19 million laid the foundation for this visionary project. Despite facing challenges such as elevated interest rates and reticence from major financial institutions, select developers have managed to secure substantial loans to fuel their ambitions. Notably, Witkoff and Monroe Capital achieved a remarkable feat in July by securing $430 million in construction financing for their esteemed Shore Club project in Miami Beach. This substantial loan, facilitated by J.P. Morgan, stands as one of the largest construction loans ever recorded for a condominium development in South Florida. Madison Realty Capital’s impactful presence extends beyond this project, as the firm also facilitated a $340 million loan in May for Dan Catalfumo’s Catalfumo Companies, backing the planned Ritz-Carlton Residences in Palm Beach Gardens.

As the momentum in the region’s real estate market remains strong, it is evident that ambitious projects are continuing to flourish. A standout example from recent history is the $558 million loan secured by the Trump Group, led by the enterprising Jules and Eddie Trump, for their opulent Estates at Acqualina luxury condo development in Sunny Isles Beach. This achievement, accomplished through Bank OZK, demonstrated the resilience and determination of South Florida’s real estate pioneers.

In the grand tapestry of Boca Raton’s real estate landscape, Penn-Florida Companies’ Mandarin Oriental project is undoubtedly a shining star. With each financial milestone, it draws closer to redefining luxury living in the region, setting new standards for opulence, innovation, and sophistication. As this ambitious endeavor continues to take shape, it stands as a testament to the unwavering dedication of developers, financial partners, and visionaries who together craft the future of South Florida’s real estate skyline.

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