One buyer settled for $2.1 million, a dozen more are in line, and now a lender wants the whole project. The delay was always the headline, but the real problem now is that buyers no longer trust the finish line.
Key Takeaways
- A Palm Beach County judge awarded buyers Douglas and Debra Jacobs a $1.98 million judgment on June 29, 2026, after their condo missed its December 31, 2025 deadline.
- County records show 13 buyers have sued the developer, Penn-Florida affiliate Via Mizner Owner III, and a separate buyer settled for $2.1 million.
- In July 2026, a lender group tied to Apollo Global Management filed a $417.7 million foreclosure suit on the condo project, putting buyer deposits at risk.
The Mandarin Oriental story in downtown Boca Raton keeps getting worse, and the trouble has shifted. For years it was delay, a luxury project announced in 2015 with a 2017 finish that still is not done. Now it is money leaving the building. According to the South Florida Business Journal, a Palm Beach County judge awarded buyers Douglas and Debra Jacobs a $1.98 million judgment on June 29, 2026, after the developer missed the deadline to finish their unit at the Mandarin Oriental Residences, 10 E Boca Raton Rd.
Another buyer settled for $2.1 million after suing over the same missed deadline, and county records show 13 buyers in total have now sued the condo developer over the delays. The pressure is no longer only from buyers. According to a Real Deal report, in July 2026 a lender group affiliated with Apollo Global Management filed a $417.7 million foreclosure suit tied to the project, alleging the developer missed interest payments and failed to repay the loan at maturity, which could put buyer deposits at even greater risk.
What did the courts actually decide?
The buyer's judgment
Douglas and Debra Jacobs won their $1.98 million judgment against Via Mizner Owner III, the Penn-Florida condo affiliate, on June 29, 2026. Circuit Judge James Sherman also let the buyers demand payment from the title companies holding their escrow deposits, a second path to collect. The couple signed in 2022 and put down the deposit, with the unit due by December 31, 2025. We all know that the delivery did not happen, so they wanted to terminate the deal and get their money back. We covered the other lawsuits in a previous blog.
The buyer's settlement
Nilesh and Liliana Undavia took a different road. On June 19, 2026, they settled for $2.1 million, due January 7, 2027, or within 30 days of the developer landing new financing. They keep a lis pendens, which is a public notice that ties up the unit's title, until repaid, but the agreement is terminated, and the developer can remarket it. Undavia told the South Florida Business Journal he settled rather than chase a judgment, since a judgment could make refinancing harder, and that the developer's smartest play is to clear out early buyers and resell at today's higher prices.
The developer's response
The developer is not conceding. Its attorney, Robert Sweetapple, said he will file a motion for rehearing, arguing the ruling conflicts with a different circuit judge's decision in another buyer's case. He said his client is still working to complete the condo, though he did not offer a completion date. That open-ended answer is a big part of the problem.
Why the real problem is now lost confidence
Delay alone does not sink a luxury building. Buyers wait out delays when they trust the outcome. What has changed here is that the trust is gone. County records show 13 buyers have sued Via Mizner Owner III; only one has produced a judgment so far, and several others were resolved through confidential settlements. This has been building for years, as we laid out in our nine years and counting blog.
Then came the move that changes the math. That $417.7 million foreclosure suit even names some buyers among the defendants, and if a lender forecloses, buyers chasing deposits could recover little or nothing. For clarity, the condos and the hotel are two pieces of the same Mandarin Oriental development, under separate Penn-Florida entities. The hotel next door is in Chapter 11 bankruptcy and, after more than one delay, heads to a bankruptcy auction on August 14, 2026. It matters here because both trace to the same developer and the same money trouble, so distress on the hotel side signals real risk for the condos.
As Larry Mastropieri put it on the Discover South Florida Podcast: "When you get a building that's this convoluted with nonsense, it's very hard to get out from under it. And I think that's the biggest issue at this point we're facing with this project. It's just like you almost need a clean slate." That is the heart of it. The units are not the problem; the confidence around who delivers them is.
Thinking about buying preconstruction in Boca Raton? Before you sign anything, talk to a real estate agent near Boca Raton who reads developer track records as closely as floor plans. Reach out to The Mastropieri Group or call (561) 544-7000.
What would it take to rebuild trust?
A clean-slate reset
There is a version that ends well, and it usually starts with new hands on the wheel. Describing a real reset, using a well-known builder only as a hypothetical, Larry offered an example: "You need to say, okay, Penn-Florida's out, the GC's out, whoever you name the developer, Related Group has bought this for pennies on the dollar, and they're stepping in. They have a plan, they have a reputation. They use a specific GC all the time. And this is how we're going to execute. And our delivery date is this date." His point: confidence comes back when a credible team resets the project with a real plan and a real date, not another round of assurances. Boca has already seen one Penn-Florida piece rescued this way, the adjacent 101 Via Mizner apartments, saved through a $235 million Grant Cardone partnership in 2025.
What preconstruction buyers should watch
For buyers, the lesson is research before the deposit, not after. As Larry explained: "It's kind of a bet you take. And that's why, when you're working with buyers like I am that are buying into buildings like this, you kind of want to hear the track record of the developer. You want to hear the quality of the general contractor." Beyond that, know when to walk, and build deposit protections into the agreement from day one. One catch: Florida law does not require developers to disclose a project's original timeline, so a 2022 buyer might never have learned the building was already years behind. If you are putting money down, start with how to protect your earnest money deposit.
Watch More on This Topic: Watch this segment | Full Episode | Last week's recap
Frequently Asked Questions
What did the buyers win in the Mandarin Oriental Boca Raton case?
A Palm Beach County judge awarded Douglas and Debra Jacobs a $1.98 million judgment on June 29, 2026, after the developer missed the deadline to finish their condo. The judge also let the buyers seek payment from the title companies holding their escrow deposits. A separate buyer settled for $2.1 million.
How many buyers are suing the Mandarin Oriental Boca condo developer?
County records show 13 buyers have filed lawsuits against the developer, Penn-Florida affiliate Via Mizner Owner III. One case (the Jacobs) has produced a judgment so far, and several others were resolved through confidential settlements.
Is the Mandarin Oriental Boca Raton project in foreclosure?
In July 2026, a lender group affiliated with Apollo Global Management filed a $417.7 million foreclosure suit tied to the condo project, according to reporting. Separately, the Penn-Florida affiliate that owns the hotel is in Chapter 11 bankruptcy, with an auction scheduled for August 14, 2026.
Could Mandarin Oriental Boca condo buyers lose their deposits?
It is a real risk. Winning a judgment is not the same as collecting one, and if a lender forecloses on the project, buyers could recover little or nothing. That is why some buyers chose settlements with set repayment dates over judgments.
What should preconstruction buyers learn from the Mandarin Oriental Boca case?
Vet the developer's track record and the general contractor before signing, and build deposit protections into the purchase agreement. Florida law does not require developers to disclose the original timeline, so a project can be years behind before a buyer ever hears about it.
Local help for buyers and investors in Boca Raton
If you are buying, selling, or investing in Boca Raton, Highland Beach, or Gulf Stream, it helps to work with a team that reads the fine print on developers and distressed projects. Reach out to The Mastropieri Group, Realtors®. For practical, hands-on support across Boca Raton, call (561) 544-7000. You can also browse current luxury homes for sale in Boca Raton.
Posted by Larry Mastropieri
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