Five Star Development has secured a financing solution for the construction of a Ritz-Carlton resort, The Palmeraie mixed-use development and a portfolio of assets in Paradise Valley, Arizona, US.

The $585m loan was originated by US-based real estate private equity firm Madison Realty Capital (MRC).

The Ritz-Carlton resort and residences at The Palmeraie will use the loan to conclude its 80% finished construction.

MRC co-founder and managing principal Josh Zegen 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 US.”

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By GlobalData

The Ritz-Carlton resort will feature 215 guest rooms surrounded by Ritz-Carlton residence villas and Ritz-Carlton branded and handled estate homes.

The retail and restaurant part comprises about 160,000ft² of high-end, mixed-use property set on 22 acres at the corner of Scottsdale and Indian Bend roads.

The fourth phase of The Palmeraie will include over 60 speciality boutiques and a selection of dining venues led by famous local and international chefs.

US-based real estate professional services firm JLL Capital Markets arranged this funding.

JLL managing director Bryan Clark said: “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.”