By IvyLee Rosario
Five Star Development secured $282 million in senior and mezzanine construction financing for the next stage of its Ritz-Carlton Hotel and Residences in Paradise Valley, Ariz., which is currently under construction.
HFF arranged $210 million in senior land and construction loan facilities with Bank of the Ozarks as well as $72 million mezzanine financing with Starwood Property Trust Inc. Loan proceeds will be used to refinance an existing land loan and construct the project.
Owned and developed by Five Star, the Paradise Valley master-planned community encompasses 122 acres and includes a 200-key Ritz-Carlton hotel, surrounded by 80 single-level Villas and 39 single-family Estate Homes. The residences will range from 1,700 to 4,500 square feet and the Estate Homes will range from 4,500 to 10,000 square feet. Both properties will be whole-ownership residences and offer Ritz-Carlton-branded services. The company also plans to build luxury townhomes as well as a shopping and dining destination dubbed The Palmeraie, which will be connected to the community through walking paths.
The resort will comprise 20 acres and feature amenities such as North America’s longest resort pool at more than 400 feet, a 14,000-square-foot spa, a state-of-the-art fitness and health center, indoor/outdoor meeting and event space, citrus orchard, herb garden harvested by the resort’s restaurants, walking paths and a grand lawn with views of Camelback Mountain. Located at the intersection of Lincoln Drive and Indian Bend Road, the site is situated in both Scottsdale and Paradise Valley, with access to downtown Phoenix just 15 miles away.
Managing Director Bryan Clark and Senior Director Zack Holderman of HFF’s debt and equity placement team represented the borrower. The company recently arranged the refinancing for three metro Boston hotels totaling 623 keys on behalf of Distinctive Hospitality Group.
“The financing market’s strong response to The Ritz-Carlton hotel and residences in Paradise Valley is a testament to the best-in-class, irreplaceable nature of the real estate and Five Star’s tremendous vision for the property,” said Clark, in a prepared statement.
Images courtesy of HFF