Ritz-Carlton Paradise Valley developer files for bankruptcy
Developers of the Ritz-Carlton resort in Paradise Valley have filed for bankruptcy.
Independent Newsmedia/MacKenzie Brower
Developers of the Ritz-Carlton resort in Paradise Valley have filed for bankruptcy.
Five Star Development says the filing is intended to create a clear, court-supervised path toward completing Ritz-Carlton Paradise Valley, The Palmeraie — a 122-acre master-planned resort, residential, and luxury retail project located at 7000 E Lincoln Dr.
Five Star and its lender New York-based Madison Realty Capital have been squabbling for months now. In May, Madison filed a notice of trustee’s sale, signaling foreclosure of the property. The next month, Five Star filed a lawsuit against Madison claiming the lender undermined and took over “the very project it agreed to finance.”
You must be a member to read this story.
Join our family of readers for as little as $1 per month and support local, unbiased journalism.
Visitors to our website will be limited to five stories per month unless they opt to subscribe. The five stories do not include our exclusive content written by our journalists.
For $6.99, less than 20 cents a day, digital subscribers will receive unlimited access to YourValley.net, including exclusive content from our newsroom and access to our Daily Independent e-edition.
Our commitment to balanced, fair reporting and local coverage provides insight and perspective not found anywhere else.
Your financial commitment will help to preserve the kind of honest journalism produced by our reporters and editors. We trust you agree that independent journalism is an essential component of our democracy. Please click here to subscribe.
Click here to see your options for becoming a subscriber.
Register to comment
Click here create a free account for posting comments.
Note that free accounts do not include access to premium content on this site.
I am anchor
resorts
Ritz-Carlton Paradise Valley developer files for bankruptcy
Independent Newsmedia/MacKenzie Brower
Developers of the Ritz-Carlton resort in Paradise Valley have filed for bankruptcy.
Posted
INDEPENDENT NEWSMEDIA
Developers of the Ritz-Carlton resort in Paradise Valley have filed for bankruptcy.
Five Star Development says the filing is intended to create a clear, court-supervised path toward completing Ritz-Carlton Paradise Valley, The Palmeraie — a 122-acre master-planned resort, residential, and luxury retail project located at 7000 E Lincoln Dr.
Five Star and its lender New York-based Madison Realty Capital have been squabbling for months now. In May, Madison filed a notice of trustee’s sale, signaling foreclosure of the property. The next month, Five Star filed a lawsuit against Madison claiming the lender undermined and took over “the very project it agreed to finance.”
Filing for bankruptcy halts foreclosure proceedings, and Five Star says it will preserve control over the project and strengthen protection for stakeholders as it advances toward a full construction restart and completion of the resort.
“This process provides the structure and transparency needed to bring the resort to completion and preserve the integrity of one of the most important developments in Arizona,” said Gerald C. Ayoub, founder and principal of Five Star Development.
Plans for The Palmeraie include a 215-room Ritz-Carlton resort, 80 branded villas, 32 estate Homes, and a 29-acre luxury retail and dining district.
Developments for the property have been nearly 20 years in the making, with construction beginning about seven years ago, but it has been beset by numerous issues, including the halt of the project’s hotel component.
Comments
No comments on this item Please log in to comment by clicking here