Lender moves to foreclose on $2B Ritz-Carlton Paradise Valley project amid legal battle

Article originally posted on Phoenix Business Journal on August 12, 2025

The lender for the $2 billion Ritz-Carlton Paradise Valley and The Palmeraie residential development has made plans to foreclose on the property amid a tense legal battle.

The lender, an entity affiliated with New York-based private equity company Madison Realty Capital, filed a notice of trustee’s sale on Aug. 4. A public auction is set for Nov. 12 at the Maricopa County Superior Court Building in downtown Phoenix, according to county documents.

The foreclosure sale marks the latest escalation in a dispute that also includes a lawsuit filed earlier this year by the project’s developer, Scottsdale-based Five Star Development, against Madison Realty Capital and its group of lenders. A key deadline in that case is approaching later this month.

For years, Five Star Development’s 122-acre luxury master-planned community has been beset by financing issues and litigation. The project includes the 215-room Ritz-Carlton Paradise Valley Resort, 80 condominiums and 32 single-family homes as well as The Palmeraie retail center aimed at high-end tenants.

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