Florida Luxury Condo Project Plagued by Delays, Lawsuits, and Foreclosure

A nearly $1 billion luxury development in Boca Raton, Florida, has become ensnared in legal and financial turmoil, leaving wealthy buyers waiting years for unfinished condominiums and struggling to recover millions in deposits. The Mandarin Oriental Residences, part of the sprawling Via Mizner development, is now facing a $418 million foreclosure lawsuit, with the hotel portion in bankruptcy and construction stalled.

At least 20 condo buyers are attempting to withdraw from their contracts and reclaim their deposits. Among them is Nilesh Undavia, who put down a $1.65 million deposit on a $5.5 million condo in 2022, which was expected to be completed by the end of that year. Despite winning an arbitration ruling for his deposit to be returned with interest, he has not yet received the funds.

Penn-Florida Companies, the developer, initially announced the Via Mizner project in 2015, envisioning a vast luxury destination that included a Mandarin Oriental hotel, 85 branded residences, 366 rental apartments, and extensive retail and dining spaces. The development promised high-end amenities like a country club, golf course, wine cellar, open-air cinema, and a rooftop infinity pool. The entire project was originally slated for completion by late 2017.

However, nearly a decade later, only the rental apartments are operational. The developer attributes the delays and financial issues to the pandemic, hurricanes, construction challenges, rising costs, supply chain disruptions, and increased interest rates. The rental portion filed for bankruptcy in early 2025 but has since emerged, though the hotel remains in bankruptcy proceedings.

The unfinished condo tower is at the center of a dispute between Penn-Florida and its lender, an affiliate of Madison Realty Capital. The lender is seeking to foreclose, claiming the developer defaulted on a $270 million loan and now owes nearly $418 million. Penn-Florida has countersued, seeking over $500 million in damages, alleging the lender contributed to the project's downfall by controlling construction decisions and withholding funds.

The project's association with the Mandarin Oriental brand is also in jeopardy. The hospitality company issued a termination notice to Penn-Florida for failing to reimburse expenses and meet reporting obligations. While Mandarin Oriental has stated the development did not meet agreed-upon milestones, Penn-Florida maintains its agreement with the hotel brand is still valid.

Buyers who paid a premium for branded luxury living face additional uncertainty. James T. Ferrara, an attorney representing some buyers, told The New York Times that the potential loss of the Mandarin Oriental name could prompt more buyers to seek to exit their contracts. The foreclosure proceedings also pose a risk, as Florida law permits developers to use a portion of buyer deposits for construction. If the foreclosure proceeds, the lender may have priority over buyers seeking refunds, potentially leaving little money to repay them.

Despite the ongoing legal battles and financial uncertainty, Penn-Florida executives express optimism about completing the development. Albert Piazza, the company's executive vice president of development, stated that most buyers have remained under contract and that some residences could be finished within nine months of construction resuming. However, no clear timeline for restarting work has been established. The sales office for the Mandarin Oriental Residences remains open.