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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.

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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.

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