Greenberg Traurig attorneys secured $398 million in loans for a Boca Raton mixed-use luxury project, pulling together a multi-disciplinary legal team to overcome the complexities of large-scale  financing.

“There were a lot of hurdles and roadblocks. It's a very complex transaction,” said Bruce C. Rosetto, a Greenberg Traurig corporate shareholder in Boca Raton.

Penn-Florida Cos. is developing Via Mizner, which is billed as an urban resort at 101-105 E. Camino Real on about 7 acres northeast of South Federal Highway and Camino Real.

Rosetto together with colleagues Dennis W. Hillier, a real estate shareholder in Boca Raton; Todd A. Miller, a corporate shareholder in Orlando; Marvin A. Kirsner, administrative shareholder in Boca Raton; Nelson F. Migdal, a shareholder in Washington; and Travis M. Walker, corporate associate in Fort Lauderdale, represented the developer.

Marcia H. Langley, a shareholder at Greenberg Traurig in Boca Raton, led the team.

An aspect adding complexity was that Citibank and SunTrust Bank were leasing space on the property, but their buildings must be demolished to make room for the project, Langley said.

The bank branches were moved to the existing 101 Via Mizner Luxury Apartments building just south of their previous location, she said.

“We had to renegotiate very complicated leases with Citibank and SunTrust to move them into the apartment property area,” she said. “That's another layer in putting all the pieces together to make a deal work.”

The financing package is for several aspects of the project, including refinancing the existing apartment building; construction of a Mandarin Oriental hotel, which will be affiliated with a country club, and the start of construction on The Residences at Mandarin Oriental, Boca Raton, a condominium segment, according to Langley.

An existing golf course and country club about four miles away at 6200 Boca Del Mar Drive will close next spring for renovations and will be rebranded as the Via Mizner Golf & City Club.

The hotel will have 164 rooms, two resort-style rooftop pools, a spa, an athletic club and dining.

The Shoppes at Via Mizner will be in each of the three towers for the hotel, condos and apartments.

The entire project is to be finished in early 2020.

Bringing the Mandarin Oriental brand, known for its luxury hotels and residences, will add a new level of luxury to Boca Raton, Langley said.

“The real change that we are seeing here is to have a flagship with international recognition at the level and quality of Mandarin Oriental. (It) brings a new credibility and a new level of luxury and attraction to … downtown Boca Raton,” she said.

But adding the brand also added a layer of complexity to negotiations, Rosetto added.

“From the legal standpoint, it was more complex than just negotiating a loan because we have an agreement with a flagship, with Mandarin (Oriental) itself. We had to have attorneys who specialize in hotel development and hotel management,” he said, adding Greenberg Traurig had that expertise in-house.

The financing was obtained from two sources.

Mack Real Estate Credit Strategies, a New York-based real estate investor, provided $318 million. Its clients include private investment funds and real estate investment trusts.

The U.S. Immigration Fund, an operator of an EB-5 program that allows foreigners to obtain green cards if they invest in job-creating U.S. projects, provided the remaining $80 million. The fund's Florida regional center is based in Jupiter.

“To go to a traditional bank and get a traditional loan is quite difficult, if not impossible, for developers. Therefore, you have to go … to specialty institutions like Mack and the EB-5 lenders,” he said, noting some banks became more stringent with lending following the Great Recession. “These are large sums, so it's not easy to find those sources of capital.”

Boca Raton, and specifically downtown, is growing and the Via Mizner project is the latest indication of that, Langley said.

“Boca Raton is a community that's growing and attracting a younger and younger base. (It's) not just for retirees, but we have the FAU (Florida Atlantic University) campus and the Boca Raton” Regional Hospital, she said. “The downtown Boca Raton market is now entering into a new level of activity and growth.”