Construction work is still not completed at the Mandarin Oriental. The condo residences, with plastering, are to the left and the hotel is to the right. Photos by Larry Barszewski/The Coastal Star
By Mary Hladky
Would-be buyers of Mandarin Oriental condos in downtown Boca Raton once again are filing lawsuits seeking return of their deposits because construction of their units was not completed by the deadlines set in their purchase agreements.
The first wave of litigation took place mostly in the summer of 2024 when four couples and an individual filed suits. After a filing slow-down, seven additional buyers have sought court relief from late 2025 and continuing through this spring.
The recent litigants put down deposits that generally ranged between $1 million and $2 million. They also are seeking their attorneys’ fees and interest.
Most signed purchase agreements in 2022. Those documents state that their units “shall be” completed and delivered to the buyer within three years of the estimated completion date.
But those 2025 deadlines passed and their units still weren’t ready. Failure to meet the deadlines would place Penn-Florida in default of the agreements.
When they sought return of their deposits, they either did not hear back from developer Penn-Florida Companies or were told they were not entitled to get their money back, their suits state.
Many of the recent litigants are represented by attorney James Ferrara, a former Palm Beach County Circuit Court judge who also represented a number of the initial litigants.
Ferrara, who spoke with The Coastal Star in 2024 about that year’s cases, did not respond to the newspaper’s recent inquiries.
Attorney Adrian Alvarez of De Biase|Alvarez in Boca Raton, who represented a Highland Beach couple in 2024 who eventually entered into a confidential settlement agreement with Penn-Florida, now represents Jack Fiorella III, who put down a $1.65 million deposit for a unit in 2022.
When it was not ready for occupancy three years later, Alvarez and his client tried to resolve the matter but were unsuccessful, leading to the filing of a lawsuit in April.
“They have not been in communication at all,” Alvarez said of Penn-Florida and the company’s attorney Robert Sweetapple.
“I think it is extremely disappointing that a developer who is dragging their feet in construction isn’t willing to have more direct conversations with the purchasers,” Alvarez said.
“The developer has received all the benefit of all the interest that could have been accrued on the money, yet these purchasers have gotten zero return on their money.”
A look south on Federal Highway shows the incomplete Mandarin Oriental condo residence construction, followed by the less finished hotel portion of the project, and then the first-phase Via Mizner apartment complex completed in 2016 just north of Camino Real.
Asked why purchasers have resumed filing lawsuits, he suggested that the reason is the Dec. 23 bankruptcy filing by Penn-Florida affiliates on the 164-room Mandarin Oriental hotel that is being built next to the condo building on Federal Highway, just north of Camino Real.
The affiliates filed for Chapter 11 bankruptcy protection after they were unable to repay lenders about $210 million at loan maturity.
That bankruptcy filing “has gotten everyone worried the condominium development is next,” Alvarez said.
One couple who has abandoned plans to move into a Mandarin Oriental condo is Nilesh and Liliana Undavia of Boston. They relocated to a condo in Boca Raton in 2022 but decided they wanted a larger one.
Based on what they were told, they had expected to be able to move quickly into the Mandarin Oriental.
They have pursued a different litigation strategy than other prospective owners, filing a seven-count lawsuit in 2024 whose allegations include fraudulent inducement and constructive fraud.
“We feel we were fraudulently induced into the purchase and sale contract,” Nilesh Undavia said. “Had we known all the facts, we would have never bought.”
Prospective condo owners aren’t alone in going to court. Contractors that have done work on the hotel and condo building also have filed suits seeking to be paid for their work.
In response to questions from The Coastal Star, Penn-Florida said, “…we remain committed to delivering one of the finest urban resorts in America.
“The overwhelming majority of our future Residents are excited to be a part of this exceptional development. However, we understand that, over time, circumstances may change for a small percentage of Residents. In such cases, we will continue to not only honor our agreements, but endeavor to be as flexible as possible in accommodating their needs, just as we have done thus far.”
Sweetapple did not respond to two requests for comment. A Mandarin Oriental media contact also did not respond.
But in court filings, Sweetapple contends that a unit completion date is an estimate, not a guarantee, that is subject to revision due to delays caused by the COVID-19 pandemic, including supply chain disruption, inflation and contractor price increases.
That interpretation, prospective owners contend, is invalid and contradicted by clear contract language.
Sweetapple also citied hurricanes Ian, which hit Florida’s southwest coast, and Nicole, which struck Vero Beach, in 2022 and impacted the supply chain and labor market.
The Mandarin Oriental project, announced with fanfare in 2015, has been exceedingly slow to rise from the ground. The completion date has been pushed back repeatedly and many city residents consider the construction site an eyesore.
After little construction took place for long stretches, the work on the 12-story condo building has moved more quickly in recent months. The hotel building, however, remains a shell.
In its most recent status report to the city, the developer expected the condo tower to be substantially complete by the fourth quarter of this year and the hotel tower by the third quarter of 2027.
But two bankruptcy filings have revealed financial strains.
The first Chapter 11 filing came in early 2025 to head off an auction of Penn-Florida’s 101 Via Mizner luxury apartment building located immediately south of the condos and hotel.
Penn-Florida faced losing that 366-unit building because it failed to pay off a $195 million senior loan provided by an affiliate of Blackstone Mortgage Trust in 2022.
That problem was resolved last summer when Cardone Real Estate Acquisitions — led by real estate investor and social media celebrity Grant Cardone — purchased the building for $235 million and creditors were repaid.
Meanwhile, Mandarin Oriental retains its interest in Palm Beach County. The company announced development of Mandarin Oriental Residences West Palm Beach, a 31-story building, in February.
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