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Penn-Florida affiliate filed for Chapter 11 bankruptcy protection on its 14-story, 366-unit apartment building at 101 Via Mizner in Boca Raton, averting a foreclosure auction over a $145 million loan. The entity, Via Mizner Owner I, listed assets and liabilities ranging from $100 million to $500 million in property and court records. Blackstone Mortgage Trust, the lender, had filed for a Uniform Commercial Code (UCC) foreclosure after alleging a loan default.

    Penn-Florida, founded by Mark A. Gensheimer, completed 101 Via Mizner in 2016 after paying $19 million for the development site in 2013 and taking out a $75 million construction loan from HSBC in 2014. The company refinanced the loan with Blackstone Mortgage Trust in 2021, increasing the amount to $195 million, with Blackstone holding a $145 million portion.

    Filing for Chapter 11 reorganization before a foreclosure auction is a common strategy among landlords facing debt issues, as it halts the auction process. Penn-Florida stated that it filed for reorganization to allow time for refinancing to close, citing that the loan was in good standing at maturity with a pending refinance.

    Blackstone Mortgage Trust expressed surprise and disappointment over the decision, emphasizing that they expect borrowers to honor their commitments under agreements. The company views 101 Via Mizner as a high-quality asset in a sector with strong fundamentals and capital markets liquidity.

    Penn-Florida's portfolio includes 6 million square feet of properties, with another 2 million square feet in development. The refinancing of 101 Via Mizner is unrelated to the Mandarin Oriental construction project, which has faced delays and a lawsuit from condo buyers over completion issues. South Florida's multifamily market experienced a boom from late 2020 to 2022 but turned due to elevated interest rates, record construction completions, and tempered demand.