Luxury Condo Buyers Face Million-Dollar Losses in Unfinished Florida Project

Wealthy buyers are seeking seven-figure refunds from a $1 billion luxury condominium project in Boca Raton, Florida, that remains unfinished nearly a decade after its initial completion deadline. The Mandarin Oriental Residences, part of the larger Via Mizner development, has become a financial and legal entanglement for at least 20 condo purchasers who are attempting to exit their contracts and recover their deposits.

Among those seeking to recover funds is investor Nilesh Undavia, who agreed to pay $5.5 million for a four-bedroom residence in 2022. He paid a $1.65 million deposit, with his apartment originally slated for completion by the end of that year. Four years later, the residence is still unfinished. Undavia has won an arbitration ruling that orders the developer, Penn-Florida Companies, to return his deposit with interest, but he describes the experience as a "river of money."

The Via Mizner project was initially unveiled in 2015 as a 2.3-million-square-foot luxury destination intended to include a 164-room Mandarin Oriental hotel, branded residences, rental apartments, retail, and dining. The original completion target for the entire development was late 2017. Currently, only the rental apartments are operational, while the hotel and condominium tower remain incomplete.

Penn-Florida states that nearly $1 billion has been invested in the development. The company attributes the extensive delays to the COVID-19 pandemic, hurricanes, construction cost inflation, supply-chain disruptions, and rising interest rates. The rental portion of the project underwent bankruptcy proceedings in early 2025 and has since emerged. The hotel filed for bankruptcy late last year and is still in proceedings.

The unfinished condominium tower is now the subject of a foreclosure lawsuit filed in July by lender Madison Realty Capital. The lender alleges that Penn-Florida defaulted on a $270 million loan and owes nearly $418 million, including interest and fees. Penn-Florida has filed a counterclaim, with affiliated companies seeking over $500 million in damages. The developer accuses Madison Realty Capital of interfering with construction decisions, withholding critical funding, and creating the defaults that are now being used for foreclosure.

The dispute could also impact the project's branding. The Mandarin Oriental hotel group sent Penn-Florida a termination notice last year, citing failure to reimburse $675,000 in expenses and meet reporting obligations. While Mandarin Oriental has stated the project missed agreed milestones, it has not clarified if its name will remain associated with the development. Penn-Florida maintains its agreement with the hospitality brand is still valid.

Lawyers representing condo buyers warn that the disappearance of the Mandarin Oriental brand could prompt more purchasers to seek withdrawals. For those already attempting to get refunds, the ongoing foreclosure proceedings present an additional challenge, as Florida law permits developers to use a portion of buyers' deposits for construction. Some buyers fear that a lender could secure its claims before they see any refunds.

Albert Piazza, executive vice president of development for Penn-Florida, expressed optimism, noting that most purchasers have remained under contract and that some residences could be completed within nine months of construction resuming. However, a clear timeline for resuming work has not been established, leaving buyers in limbo as legal battles continue.