JLL, a global commercial real estate and investment management company, has arranged a $585 million refinancing for The Ritz-Carlton Paradise Valley, The Ritz Carlton Residences, and The Palmeraie, a mixed-use development in Paradise Valley, Arizona. The secured loan, provided by Madison Realty Capital, will help complete the development of the 122-acre Palmeraie, which includes luxury residences, a hotel, high-end retail space, and dining options.
Five Star Development, the borrower, had already completed 80% of the construction work, but the additional funds will be used to finish the project. The Palmeraie is one of the most anticipated experiential shopping, dining, and living destinations in North America and is located on the border of Scottsdale and Paradise Valley, the wealthiest city in Arizona.
At the center of the Palmeraie community is a 215-room Ritz-Carlton resort, surrounded by 80 single-level Ritz-Carlton Residences Villas that have already been 100% sold, and 32 single-family Ritz-Carlton branded and serviced Estate Homes. The retail component of the development includes approximately 160,000 square feet of high-end, mixed-use space located on 22 acres at the corner of Scottsdale and Indian Bend Roads.
The Palmeraie will also feature a variety of dining destinations led by 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, including five penthouses. The interest list is currently forming, with a sales campaign beginning later this year.
JLL’s Capital Markets group, a full-service global provider of capital solutions for real estate investors and occupiers, worked on behalf of Five Star Development to secure the loan with Madison Realty Capital. The JLL team was led by Managing Director Bryan Clark, Director Olga Walsh, and Associate Daniel Pinkus.
Clark praised Madison Realty Capital for their significant experience with branded hotel residences and deep understanding of the hospitality market. He said, “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.”
Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, echoed Clark’s sentiments and 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 Scottsdale market, which is consistently ranked as one of the best places to live in the country.”
The JLL Capital Markets group has more than 3,000 specialists worldwide and offices in nearly 50 countries. They provide a range of services, including investment sales and advisory, debt advisory, equity advisory, and recapitalization.
Five Star Development, the borrower, is a leading commercial real estate company that manages, develops, and invests in luxury residential, five-star hospitality, high-end retail, Class-A office, and best-in-class industrial real estate. The company has developed over 25 million square feet of projects valued at more than $3.5 billion across the Southwest.
The Palmeraie development is a prime example of Five Star Development’s customer-focused approach and innovative, sustainable development practices. The company prides itself on completing complex projects and overcoming the challenges presented in major development undertakings.