A Boca Raton couple who placed a $1.65 million deposit on a Mandarin Oriental condo unit that was unfinished by the expected completion date is slated to receive $2.1 million, plus interest.

Nilesh and Liliana Undavia settled their legal case in June against Via Mizner Owner III, an entity of condo developer Penn-Florida Companies, after an arbitrator determined that they were entitled to compensation and interest, according to court records. The arbitrator found in favor of Via Mizner on claims that were unrelated to the termination of the Undavias’ agreement to buy the $5.5 million condo Unit 706. The couple is to be paid by Jan. 7, or within 30 days of Via Mizner’s refinancing or obtaining additional financing for the condo construction. If that doesn’t happen, they will be entitled to a consent judgment for breach of contract for the amount due to them, as well as attorneys’ fees and costs. This marks the first time that terms have been revealed in court records for resolving disputes between would-be condo buyers and Penn-Florida, whose construction of the condo building is years behind schedule and remains incomplete. “We are pleased to have reached a settlement with the developer and move on with our lives,” said Nilesh Undavia. Their attorney, Alec Smith, declined comment.

Construction work remains incomplete at the Mandarin Oriental. The condos, with plastering, are to the left and the hotel is to the right.

 

Eight other buyers also have settled their lawsuits against Penn-Florida, but the settlement terms are confidential. An additional eight cases against Penn-Florida remained open as of June.

Over the past two years, people who placed deposits on condos that weren’t completed by the deadlines set in their purchase agreements have gone to court seeking help in getting their deposit money back. Deposits generally ranged from $1 million to $2 million.

Many signed purchase agreements in 2022 and expected to be able to move in no later than 2025. But their units were not completed by then.

When they sought return of their deposits, they either did not hear back from Penn-Florida or were told they were not entitled to get their money back, their lawsuits state.

When Penn-Florida announced the project in 2015, many Boca Raton residents were thrilled that a Mandarin Oriental hotel and condo would be built along Federal Highway just north of Camino Real.

But sentiment has changed as construction slowed to a crawl and all but stopped completely for stretches of time. Many call the project an eyesore.

In recent months, construction of the condo building has moved ahead a bit more quickly but the hotel remains a shell.

Meanwhile, the project has been the subject of two bankruptcy filings.

One case remains active. The other was resolved a year ago when Cardone Real Estate Acquisitions — led by real estate investor and social media celebrity Grant Cardone — purchased the adjacent Via Mizner apartment building for $235 million and creditors were repaid.