News May 12, 2023
PE Firm Loans $585 Million to Luxury Resort That’s 80% Finished
Bloomberg reported that Madison Realty Capital has provided $585 million to wrap up construction of the Ritz-Carlton Paradise Valley, The Palmeraie. The luxury resort, a 215-room hotel surrounded by private residences, retail and dining facilities on the border of Scottsdale, Arizona is 80% complete. Five Star Development, the builder, has secured deposits on 80 villas valued at $300 million. 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. 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.” Bryan Clark, managing director of JLL Capital Markets, brokered the financing.