In a South Florida real estate
market where condominium sales are slowing and deposit requirements are
being reduced on new construction, one Boca Raton developer is confident
that its latest project—which includes condominiums priced at $2
million to $18 million—will buck the
downward trend.
Penn-Florida Companies is currently building Via Mizner, a one million-square-foot, mixed-use project in Boca Raton, located between Palm Beach and Fort Lauderdale. When complete, it will bring 366 luxury apartments, a five-star Mandarin Oriental hotel, 65,000 square feet of upscale retail space, a private club and the nation’s fifth Residences at Mandarin Oriental condominiums to the city.Originally planned with 100 units, but currently down to 90 due to the combination of units by buyers, the Residences includes one- to four-bedroom condominiums ranging from 1,400 to 6,000 square feet and penthouses from 4,700 to 8.900 square feet. The target market includes northeasterners, international buyers and locals seeking to downsize from their country club communities.The developer began taking reservations in February, although the units won’t be delivered until 2018.“There’s a strong demand for this project, and we couldn’t hold off,” said Al Piazza, senior vice president of development for Penn-Florida, a residential and commercial development firm. “There are only five Mandarin residence communities in the United States, so people who want to live in an affiliated product are very aggressive at getting their foot in the door.”
There are currently seven Residences at Mandarin Oriental globally, with four now operational in the United States, in Atlanta, Boston, Las Vegas and New York. More are set to open in the coming years.
The units will have open floor plans, terraces with summer kitchens, spa-style baths and private elevator foyers. Building amenities include a rooftop pool and cabanas, fitness center and an extensive wine cellar with private storage and tasting room. Residents will have access to the facilities of the adjacent hotel and will also receive membership in a private club.
Because of the association with Mandarin Oriental, Piazza believes the condominiums will sell. “The buyers who want to be here understand Mandarin and the lifestyle associated with it,” he said.
According to Discover the Palm Beaches, an official tourism site, Boca Raton currently has no hotel with a AAA Five Diamond Rating. (There are three in nearby Palm Beach and Manalapan.) Hotel occupancy in Boca Raton in February was at 86.3 percent, compared to 61.7 percent nationally, according to STR, a hotel data and analytics firm.
Two other new condominiums currently are selling in downtown Boca Raton, for a total of 179 units, while an additional 384 units are in the planning stage (in addition to the Mandarin project), according to ISG World, a sales and marketing firm. One of them, 327 Royal Palm, broke ground in February. About half the units are sold, with prices starting at $1.6 million for 3,100- to 7,000-square-foot units.
Piazza said he’s not competing with residential condominiums. “If our buyers were looking for a residential commodity,” he said, “there are a lot of opportunities for that all up and down the coast. When you’re looking for a hotel-branded residence, there are limited opportunities.”
Craig Studnicky, co-founder of ISG World, who currently is handling marketing and sales for the Residences at W Fort Lauderdale, isn’t sold on the project. “Those sound like waterfront prices, but you’re not on the water,” he said. “The prices are expensive for Boca.”
But, Studnicky added, the hotel branding might compensate for the location. “When you hear Mandarin Oriental,” he said, “it conjures images that it will be really five-star and that the finishes will be extraordinary.”
downward trend.
Penn-Florida Companies is currently building Via Mizner, a one million-square-foot, mixed-use project in Boca Raton, located between Palm Beach and Fort Lauderdale. When complete, it will bring 366 luxury apartments, a five-star Mandarin Oriental hotel, 65,000 square feet of upscale retail space, a private club and the nation’s fifth Residences at Mandarin Oriental condominiums to the city.Originally planned with 100 units, but currently down to 90 due to the combination of units by buyers, the Residences includes one- to four-bedroom condominiums ranging from 1,400 to 6,000 square feet and penthouses from 4,700 to 8.900 square feet. The target market includes northeasterners, international buyers and locals seeking to downsize from their country club communities.The developer began taking reservations in February, although the units won’t be delivered until 2018.“There’s a strong demand for this project, and we couldn’t hold off,” said Al Piazza, senior vice president of development for Penn-Florida, a residential and commercial development firm. “There are only five Mandarin residence communities in the United States, so people who want to live in an affiliated product are very aggressive at getting their foot in the door.”
There are currently seven Residences at Mandarin Oriental globally, with four now operational in the United States, in Atlanta, Boston, Las Vegas and New York. More are set to open in the coming years.
The units will have open floor plans, terraces with summer kitchens, spa-style baths and private elevator foyers. Building amenities include a rooftop pool and cabanas, fitness center and an extensive wine cellar with private storage and tasting room. Residents will have access to the facilities of the adjacent hotel and will also receive membership in a private club.
Because of the association with Mandarin Oriental, Piazza believes the condominiums will sell. “The buyers who want to be here understand Mandarin and the lifestyle associated with it,” he said.
According to Discover the Palm Beaches, an official tourism site, Boca Raton currently has no hotel with a AAA Five Diamond Rating. (There are three in nearby Palm Beach and Manalapan.) Hotel occupancy in Boca Raton in February was at 86.3 percent, compared to 61.7 percent nationally, according to STR, a hotel data and analytics firm.
Two other new condominiums currently are selling in downtown Boca Raton, for a total of 179 units, while an additional 384 units are in the planning stage (in addition to the Mandarin project), according to ISG World, a sales and marketing firm. One of them, 327 Royal Palm, broke ground in February. About half the units are sold, with prices starting at $1.6 million for 3,100- to 7,000-square-foot units.
Piazza said he’s not competing with residential condominiums. “If our buyers were looking for a residential commodity,” he said, “there are a lot of opportunities for that all up and down the coast. When you’re looking for a hotel-branded residence, there are limited opportunities.”
Craig Studnicky, co-founder of ISG World, who currently is handling marketing and sales for the Residences at W Fort Lauderdale, isn’t sold on the project. “Those sound like waterfront prices, but you’re not on the water,” he said. “The prices are expensive for Boca.”
But, Studnicky added, the hotel branding might compensate for the location. “When you hear Mandarin Oriental,” he said, “it conjures images that it will be really five-star and that the finishes will be extraordinary.”
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