Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, today announced that it has originated a $585 million loan to Five Star Development for the completion of The Ritz-Carlton Paradise Valley, The Palmeraie and The Palmeraie, a mixed-use, ultra-luxury retail, dining and residential development in Paradise Valley, Arizona as well as a portfolio of assets. The loan will be used to finish construction of The Ritz-Carlton Resort and Residences in Paradise Valley at The Palmeraie, which is already 80% completed.
DEEPER DIVE: $2 billion Palmeraie project breaks ground in Scottsdale
Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, said, “We are pleased to provide a flexible financing solution for Five Star Development, who has significant experience developing luxury properties in the southwestern United States. This is one of the most impressive undertakings of a luxury master-planned community on the West Coast. Five Star Development has completely presold each of the masterfully designed Villas and nearly half of the Estate Homes. The Ritz-Carlton is one of the world’s most iconic luxury brands and this development is catered for the affluent and desirable Scottsdale market, which is consistently ranked as one of the best places to live in the U.S.”
Spanning 122 acres on the border of Scottsdale and Paradise Valley, the state’s wealthiest city, The Palmeraie is one of the most-anticipated experiential shopping, dining and living destinations in North America. At the heart of the community is a 215-room Ritz-Carlton resort that will be surrounded by 80 single-level Ritz-Carlton Residences Villas, which are 100% sold, and 32 single-family Ritz-Carlton branded and serviced Estate Homes. As for the retail and restaurant component, there is approximately 160,000 square feet of high-end, mixed-use space located on 22 acres at the corner of Scottsdale and Indian Bend roads. Home to more than 60 exceptional luxury and specialty boutiques as part of the fourth phase, The Palmeraie will also incorporate a variety of dining destinations lead by best-in-class, celebrated local and international chefs. FENDI Private Residences will open its first ground-up residential enclave in North America at The Palmeraie with a boutique collection of 52 elegantly crafted residences with five unequaled penthouses. The interest list is currently forming with a sales campaign beginning later this year.
Bryan Clark, Managing Director of JLL Capital Markets, who arranged the financing, added, “Madison Realty Capital’s significant experience with branded hotel residences and deep understanding of the hospitality market sets their team apart. We were pleased to work with them to deliver tailored financing for a hospitality and luxury retail project that will set a new standard in Paradise Valley.”
