Holliday Fenoglio Fowler, L.P. (HFF) announces the closing of $282 million in senior and mezzanine construction financing for the next stage of development of The Ritz-Carlton hotel and residences in Paradise Valley that is currently under construction.
The HFF team worked on behalf of the developer, Five Star Development (Five Star), to place the $210 million senior land and construction loan facilities with Bank of the Ozarks, and the $72 million mezzanine financing with Starwood Property Trust, Inc. Loan proceeds will be used to refinance an existing land loan and construct The Ritz-Carlton hotel and residences.
Owned and developed by Five Star, The Ritz-Carlton, Paradise Valley master-planned community spans 122 acres and includes a 200-room Ritz-Carlton hotel that will be surrounded by 80 single-level Villas, ranging in size from 1,700 to 4,500 square-feet, and 39 single-family Estate Homes, ranging from 4,500 to 10,000 square feet. The Villas and Estate Homes will be whole-ownership residences offering Ritz-Carlton-branded services. Five Star also plans to build luxury townhomes and an ultra-luxe shopping and dining destination called The Palmeraie, which is connected to The Ritz-Carlton, Paradise Valley via lush walking paths.
The Ritz-Carlton resort will be spread across 20 acres featuring North America’s longest resort pool at just over 400 feet; a 14,000-square-foot, world-class spa with indoor and outdoor treatment areas; state-of-the-art health and fitness center; indoor and outdoor meeting and event space; citrus orchard; herb garden harvested by the resort’s restaurants; walking paths; and a grand lawn providing stunning views of the iconic Camelback Mountain.
Located on the west side of Scottsdale Road between Lincoln Drive and Indian Bend Road, the site is situated in both Scottsdale, a popular tourist destination with more than seven million visitors per year, and Paradise Valley, a small, affluent community with a median home listing of $2.6 million. The property, which is the last large, undeveloped land parcel within these prestigious areas, is ideally positioned about 15 miles northeast of downtown Phoenix in a central location among existing walkable retail, restaurant and other services.
The HFF debt and equity placement team representing the borrower included managing director Bryan Clark and senior director Zack Holderman.
“It has been a pleasure to work with the team at Five Star Development on this transaction,” Clark said. “The financing market’s strong response to The Ritz-Carlton hotel and residences in Paradise Valley is a testament to the best-in-class, irreplaceable nature of the real estate and Five Star’s tremendous vision for the property. Bank of the Ozarks and Starwood Property Trust performed flawlessly, as always, on this very complex transaction.”
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a commercial mortgage broker licensed with the Arizona Department of Financial Institutions, License Number CMB 0938500 and NMLS Number 1524298.