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JULY11,2019 | PAULOWERS
DeveloperReceivesConstructionLoanforLuxuryCondominiumsNearMiamiUnitsWillRiseNexttoMandarinOrientalHotel
Thethree-buildingViaMiznerdevelopmentisexpectedtobecompletein2021.Illustration:Penn-FloridaCos.
Adeveloperplanstouseanew$225millionconstructionloantobuildthefinalpieceofa$1billionluxurydevelopmentlocated45milesnorthofMiamiinBocaRaton,Florida.
TheResidencesatMandarinOriental,BocaRatonisscheduledtobecompleteinabouttwoyears,atthesametimeasaMandarinOrientalHotel,accordingtodeveloperPenn-FloridaCos.Both12-storyprojects,alongwitha366-unitapartmentbuilding,arepartofthe2million-square-footViaMiznerindowntownBocaRaton.
ThelenderwasMadisonRealtyCapital,aNewYork-basedprivateequityfirm.
The92-unitResidencescondominiumoffersoceanandgolfcourseviews.Unitsrangefrom1,500to9,000squarefeetandarepricedfrom$2millionto$19.5million.Residentswillhaveaccesstotheamenitiesofthe164-roomhotel.
BocaRaton-basedPenn-Floridahasnotdisclosedtheexactnumberofunitsundercontract.
“Pre-salevelocityforTheResidencesistremendousaspeoplehavecometounderstandtheinvestmentpotentialaswellastheuniquelifestyle,”ChiefExecutiveMarkA.Gensheimersaidinastatement.
TheResidencesatMandarinOriental,BocaRatonwillhavewaterandgolfcourseviews.Illustration:Penn-FloridaCos.
SomerealestateanalystshavequestionedwhetherBocaRatoncanattractluxurybuyersforadevelopmentthatisn’tonthewater,especiallyatatimewhencondopricesarelevelingoffandsoftening.
ButViaMiznerisneartheBocaRatonResort&Club,whichsoldforaSouthFloridarecordpriceof$875millioninJunetothefounderoftheDellcomputercompany.
Andwhilethehousingmarketisnearitspeak,anyslowdownalmostcertainlywillbeminorcomparedtothehistoriccollapsemorethanadecadeago,saidKenJohnson,aneconomistandrealestateprofessoratFloridaAtlanticUniversity.
JohnsoncitedstatisticsfromIndianaUniversity’sStatsAmericathatshowBocaRaton’spopulationincreasingby15%overthenextdecade,boostingthedemandforhousing.HealsopointedoutthatthehousingmarketwillhavetimetonormalizebythetimetheResidencescondoopensin2021.
“Whateverisgoingtohappenwillhavehappenedandbeencorrected,”Johnsonsaidinaninterview.“Idon’tseeanyproblemsattractingthehigh-endpurchaserstoBocaRaton.”
FortheRecord:AnthonyOrso,BillWeberandHenryStimlerofNewmarkCapitalMarketStrategiesarrangedthefinancingonbehalfoftheborrower.SBArchitectsandNicholsBroschWurstWolfearedesigningViaMizner.Straticonisthegeneralcontractorontheproject.