Developer gets financing to complete luxury mixed-use project in Paradise Valley

PHOENIX — A local development company announced this week it has received the funding to finish construction on a luxury mixed-use project in Paradise Valley.

Scottsdale-based Five Star Development received a $585 million loan from Madison Realty Capital to complete the $2 billion development of The Palmeraie, a master-planned community that features hospitality, residential, retail and dining amenities.

“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,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a press release.

“This is one of the most impressive undertakings of a luxury master-planned community on the West Coast.”

The development company said in the release that the project is 80% complete.

The focal point of the 122-acre development is the Ritz-Carlton Paradise Valley, a 215-room resort with secret gardens, on-site citrus groves and a 400-foot swimming pool.

The development also has Ritz-Carlton branded and serviced residences, one of which is 100% sold while the other is 50% sold, according to the release.

FENDI Private Residences will add an additional 52 residences in the future, along with five penthouses, the developer said.

The project also features 160,000 square feet of retail and restaurant space located on 22 acres at the corner of Scottsdale and Indian Bend roads, according to the release.

The development company said the loan it received to complete the project is one of the largest in the construction industry this year.

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