Madison Realty Capital is supplying a $585 million loan to Five Star Development for the completion of a $2 billion Scottsdale and Paradise Valley, Arizona mega-project anchored by Ritz-Carlton-branded assets.
The May 12 financing provided by the New York-based real estate investment manager will go toward the completion of The Ritz-Carlton Resort and Residences in Paradise Valley at The Palmeraie, which is currently 80 percent finished.
Josh Zegen, managing principal and co-founder of Madison Realty Capital, said the Arizona mixed-use project is one of the most impressive undertakings of a luxury master-planned community on the West Coast. He noted Scottsdale, Arizona-based developer Five Star has pre-sold each of the 80 single-level villas in the project and nearly half of the 32 single-family estate homes.
The project spans 122 acres on the border of Scottsdale and Paradise Valley in Arizona and features retail, dining and residential spaces across its footprint.
The centerpiece of the $2 billion project is the 215-room Ritz-Carlton resort being funded for completion by Madison Realty Capital’s $585 million loan. Bryan Clark, managing director of Chicago-based advisory JLL Capital Markets, arranged the latter financing.
The project’s retail and dining spaces comprise about 160,000 square feet of mixed-use space across 22 acres at the corner of Scottsdale and Indian Bend roads. The retail offerings currently include 60 luxury and specialty boutiques.
Atop this, FENDI Private Residences – developed by Five Star and branded under the Italian fashion label through a licensing agreement – will also be featured in the mega-project. The FENDI-branded ground-up residential component includes 52 residencies and five penthouses.
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