A lawsuit between the developer of the still unfinished Ritz-Carlton in Paradise Valley and its lender, as well as the lender’s plan to foreclose on the property, has left the future of the $2 billion luxury resort in limbo.
New York-based Madison Realty Capital in May filed a notice of trustee’s sale, signaling foreclosure of the property. The next month, Five Star Development, developer of the 122-acre Ritz-Carlton resort, filed a lawsuit against the lender claiming it undermined and took over “the very project it agreed to finance.”
Plans 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.
