Penn-Florida Cos. has obtained a $302.5 million loan in the latest refinancing of its Mandarin Oriental hotel and branded residences project in downtown Boca Raton.

Madison Realty Capital, a real estate private equity firm, provided the loan, which replaces the $225 million loan it provided in 2019, Penn-Florida announced on Aug. 14.

The refinancing comes as questions have arisen about Penn-Florida’s ability to finish the project. Since it was first announced in 2015, the completion date has been pushed back four times, most recently until sometime in 2024.

Construction has been sporadic, slowing almost to a halt this spring. The two buildings, located just north of Camino Real along Federal Highway, remain shells with only some windows installed.

Asked if the loan would allow the pace of construction to pick up, Elizabeth Cross, vice president of marketing for Penn-Florida, said in an email that “we are well capitalized, and the pace is on schedule.”

Penn-Florida secured a $398 million loan in 2017 from Mack Real Estate Credit Strategies and the U.S. Immigration Fund. In 2021, the company obtained a $335 million refinancing package, with Blackstone Mortgage Trust providing a $195 million senior loan and Romspen Investment Corp. providing a $140 million refinancing loan.

When the $225 million Madison Realty Capital loan was announced, Penn-Florida said that it completed capitalization for the project and would be used to finish it.

The hotel and residences are part of the three-building Via Mizner development. 101 Via Mizner, a 366-unit luxury apartment building, was completed in 2016.

— Mary Hladky

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