Real Estate

Building a behemoth: the Paradise Valley Ritz-Carlton

(Source: ParadiseValleyIndependent): Terrance Thornton

Five Star Development gave the Town of Paradise Valley Independent an inside look at the progress being made in the effort to make the Paradise Valley Ritz-Carlton resort community come to life.

Scottsdale-based Five Star Development, which was founded by prominent developer Jerry Ayoub, is the entity that is bringing the Paradise Valley Ritz-Carlton development proposal forward and is represented by Jason Morris of Whitey Morris PLC.

The Ritz-Carlton development — a more than 100-acre luxury development effort — is beginning to sprout both its commercial and residential footprint as construction was occurring Wednesday, July 26 in the Town of Paradise Valley.

Over the last several months, two major developments have occurred: Five Star Development sold 23 acres of land to Shea Homes within the Ritz-Carlton community in the Town of Paradise Valley meanwhile the city of Scottsdale has approved a new shopping center coined, “The Palmeraie” that will, in part, encompass 20 acres of land adjacent to the forthcoming resort community.

The project includes a 200-room Ritz-Carlton resort, surrounded by 80 single-level villas and 39 estate homes, all of which will be whole-ownership, branded and fully-serviced by the Ritz-Carlton.

In all, Scottsdale City Council approved three different measures for the zoning change with one being a $408,000 contribution to the municipality from Five Star Development for the city to use to assist in constructing and maintaining the city’s drainage system.

The approved measures will allow for a mixed-use development within Scottsdale city limits that can consist of 141 residential units in 170,000 square feet, a maximum of 150 hotel units on 134,000 square feet, 226,000 square feet of commercial space and 80,000 square feet of office space.

Shea Homes Arizona is seeking zoning amendments for its proposed housing stock while a traffic calming measure along Indian Bend Road — an effort to appease Scottsdale zoning requirements — begins to move through the fine-tuning of the Town of Paradise Valley.

Earlier this year, Five Star announced all 91 villas, priced from $1 million to more than $5 million, were released as the first phase of sales. Record success was reportedly achieved with all units selling in one day, totaling over $250 million in real estate.

The Paradise Valley special-use permit — which was approved by a 4 to 3 vote in early 2016 — entitles Five Star, through an investment of $130 million, to build a Ritz-Carlton branded resort community.

The forthcoming Ritz-Carlton community includes the following zoning stipulations:

  • Area A: 200-room resort on 18.1 acres
  • Area A1: 94 resort-brand-ed villas
  • Area B: 66 single-family homes on 31.3 acres
  • Area C: 45 resort-branded, single-family homes on 22.5 acres
  • Area D: 53 townhomes on 8.8 acres
  • Area E1: A 54,000 square-foot luxury retail center on 7.2 acres
  • Area E2: Influx design as the use of 5.7 acres is yet to be determined