Larry Mastropieri visited the build site in August of 2023.
Frank and Nancy Scala’s dream of luxury living at the Mandarin Oriental in Boca Raton has hit a major roadblock. After eagerly signing a contract for a $4.1 million condo, the Scalas have faced a series of frustrating delays that have led them to take legal action.
The Scalas, who sold their waterfront home and made a hefty $1.3 million deposit, were expecting to close on their new condo by June 2021. However, as the deadline passed, their dream home remained unfinished. Their contract, with the developer Penn-Florida Companies, allowed up to three years from the initial closing date to complete the project. But even the extended deadline of June 30 this year has come and gone, leaving the Scalas—and other buyers—fuming.
The Via Mizner project, which is spearheaded by Penn-Florida’s President Mark Gensheimer, began in 2014 with the acquisition of the site at 105 East Camino Real. The first phase, a residential apartment building, was completed four years later. However, the grand plans for the Mandarin Oriental hotel and 86 luxury condos were originally set to wrap up in 2020. Fast forward to last year, when Madison Realty Capital injected a substantial $302.5 million refinancing into the project, but construction remains stalled. The condos, though about 90 percent presold, are still far from completion.
The Scalas have now taken their grievances to court, filing a lawsuit on August 13 in Palm Beach County Circuit Court. They are suing Via Mizner Owner III LLC, an affiliate of Penn-Florida, demanding their deposit back with interest. The lawsuit paints a grim picture of the project’s current state: “The entire structure … is still just a few steps beyond a concrete shell, and a closing is far off into the future,” the complaint alleges.
In response, a developer spokesperson insists that construction is still ongoing and promises that the Mandarin Oriental component will be completed next year. Despite this assurance, the Scalas’ attorney, James Ferrara of Hinshaw & Culbertson, argues that his clients are disillusioned and simply want their money back. “They had this dream of living in the crown jewel of Boca Raton real estate,” Ferrara said. “For the Scalas, it’s heartbreaking. All they want is for the developer to honor the contract terms.”
The Scalas had initially sought a return of their deposit on July 5, only to be told a month later that they were “not entitled” to a refund, with no clear explanation provided. Ferrara claims that while Penn-Florida can use some buyers' deposits to fund construction, they are withholding funds set aside in escrow.
Penn-Florida has declined to comment on the pending litigation but maintains that they will uphold all purchase agreements and take necessary actions to protect the project’s integrity.
In a twist, Ferrara is also representing Robert and Brenda Needleman, who recently filed a separate lawsuit seeking nearly $1.8 million back for their $5.9 million condo, purchased in 2019. Another case he previously handled was dismissed, suggesting a potential settlement.
As the legal battles unfold, the future of the Via Mizner project remains uncertain, leaving hopeful buyers like the Scalas and Needlemans waiting for their dream homes—or at least their deposits—to materialize.
Additionally, The Mastropieri Group's Larry Mastropieri visited the property over a year ago, and see below what he found!
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