After years of delays, lawsuits and other issues, Penn-Florida Companies is now facing foreclosure on the Mandarin Oriental Residences, Boca Raton project.

The lender, an affiliate of Apollo Global Management, filed a $417.7 million suit against the developer’s affiliate and a laundry list of co-defendants, including subcontractors and condo buyers. Penn-Florida, led by Mark Gensheimer, first unveiled plans for the Mandarin Oriental-branded mixed-use condo development in 2015. Construction was supposed to begin in 2017, when the developer secured its original construction loan, which was refinanced in 2023 with a $270 million loan.

The 1.5-acre site is home to the partially completed 163-room hotel and 85-unit condo at 105 East Camino Real.

The foreclosure suit alleges the developer defaulted on its loan by failing to make monthly interest payments due from June 2024 to August 2025. The lender says that Penn Florida failed to pay off the loan when it matured in September of last year.

The $417.7 million includes the $270 million principal balance on the note, $24.6 million in advanced funds for project expenses, plus interest, fees and other costs.

Condo buyers could lose most, if not all, of their deposits if the Apollo affiliate forecloses on the property. But the foreclosure wasn’t the first sign of trouble at the project. The Mandarin Oriental, Boca Raton hotel, owned by a separate Penn-Florida affiliate, is heading to a bankruptcy auction on Aug. 14.

More than a dozen buyers have also sued the Penn-Florida affiliate developing the condo component over missed deadlines.

The project’s trajectory is markedly different from the Mandarin Oriental-branded condo development in Miami, which has reported strong presales and an accelerated construction timeline — including two $50 million penthouse sales before a shovel hit the ground.

But not all branded condo buildings are built equal.