Five Star Development received a $585 million loan from Madison Realty Capital to complete an oft-delayed $2 billion resort, residential, dining and retail development in Paradise Valley, Arizona, according to a press release.
The loan will be used to finish construction of the Ritz Carlton Resort and Residences — a 215-room Ritz-Carlton resort surrounded by 80 single-level villas, and 32 single-family homes at the 122-acre Ritz Carlton Paradise Valley, Palmeraie development, the release says.
Construction on the development, which is 80 percent completed, is expected to be finished by the end of the year.
JLL Capital Markets arranged the financing for the loan.
The retail and restaurant portion of the 122-acre luxury planned community includes 160,000 square feet of mixed-use space with 60 boutiques, the release says. Fendi Private Residences will also open a 52-unit complex with five penthouses at the development.
Construction, much to the frustration of homeowners, was paused earlier this year as Five Star secured the final phase of financing for the project, Phoenix Business Journal reported.
The project had also stalled for several years due to Covid and a lawsuit by the town of Paradise Valley over infrastructure, the outlet reported. The lawsuit was settled in 2021.
The loan follows Madison Realty Capital’s announcement last week of a $340 million construction loan for The Ritz-Carlton Residences, Palm Beach Gardens, in Palm Beach Florida.
Arizona has been booming with luxury development in recent years.
In March, Pennsylvania-based homebuilder Toll Brothers purchased 100 acres at Storyrock in Scottsdale for $24.7 million to build 81 homes at the luxury master-planned community.
It was the largest homebuilder sale in terms of price since last May, the Phoenix Business Journal reported, citing Storyrock Development Vice President Chase Emmerson.
Nate Nathan, Dan Baldwin, Ryan Duncan and Joe Colucci of Scottsdale-based Nathan & Associates negotiated the deal.
The homes will be built on an average of 1 acre, with some homes being built on lots of 3 or more acres, Bob Flaherty, group president of Toll Brothers in Arizona, told the outlet. Construction of the homes, Flaherty said, would begin around fall 2024, with their completion set for that winter.
— Ted Glanzer