The owner of the new Mandarin Oriental hotel, planned in downtown Boca Raton, expects to have its construction completed later this year despite a filing seeking Chapter 11 bankruptcy protection.
Bradley Shraiberg, an attorney representing Via Mizner Owner II, which is the hotel portion of the project, said this Ch. 11 reorganization will offer the best opportunity for paying off creditors. The filing was made in the U.S. Bankruptcy Court for the Southern District of Florida on Dec. 23.
“This bankruptcy is unique in the fact that it was filed in collaboration with our secured creditor. Most bankruptcies are filed because you’re on the eve of foreclosure sale. You’re about to lose the property so you prevent the secured creditor from foreclosing by filing a bankruptcy,” Shraiberg said. “This is in a cooperation with our secured creditor.”
A secured creditor is the project’s lender, Shraiberg explained: “It’s like your mortgage company for your house.” In this case, the senior lender for Via Mizner Owner II is Romspen Investment Corp.
“We’re walking in hand in hand with our secured creditor. I can’t emphasize enough how rare that situation is, so we both believe that through this bankruptcy process, it is the best way to reorganize,” he said.
“We are actively speaking with investors that will provide additional capital to refinance the senior-secured debt and help with the finalization of the project.”
The entire hotel and residential project, billed as a $1.5 billion ultra-luxury resort at the corner of Federal Highway and Camino Real, has experienced delays since designs began in 2015, with developers blaming the COVID-19 pandemic and the high standards of Mandarin Oriental-branded projects.
The Mandarin Oriental brand has an “acclaimed collection of luxury hotels, resorts and private homes,” which are “located in the world’s most prestigious destinations,” according to the Mandarin Oriental website.
Shraiberg also represented Via Mizner Owner I in a Chapter 11 bankruptcy reorganization filed on Jan. 15, 2025, according to court records. This phase of the project was the already-completed 366-unit 101 Via Mizner apartments.
The reorganization “was very successful in the fact that it literally paid all creditors 100 cents on the dollar, including the senior secured lender,” Shraiberg said.
Hotel construction now is aimed to be completed in 2026, Shraiberg said.
“There’s an ‘it depends’ because we are still negotiating with potential lenders that can affect the timeline,” he said.
The 85 residences associated with the hotel, which fall under Via Mizner Owner III, also remain unfinished, but these residences also are planned to be finished in 2026, according to a statement from Via Mizner.
“Despite broader market headwinds and supply disruptions following the pandemic, Via Mizner has successfully navigated a challenging environment of rising construction costs and interest rates, keeping progress steady and the vision intact,” according to the statement.
