Foreclose Possibility on $2B Ritz-Carlton Paradise Valley project

The long-awaited Ritz-Carlton hotel development in Paradise Valley is once again in the headlines — this time for a looming foreclosure.

The $2 billion project, led by Five Star Development since 2007, has faced years of delays, lawsuits, and contractor changes. While parts of the luxury community — including condos, a clubhouse, and retail spaces — are complete, the centerpiece hotel and several villas remain unfinished.

The conflict centers around a $585 million loan issued in 2023. The lender claims Five Star is in default after missing construction deadlines and failing to repay the loan. The developer, in turn, has sued, alleging the lender acted in bad faith to take control of the project.

As a result, construction has stalled. Paradise Valley officials have even delayed issuing new occupancy certificates for the villas until progress resumes on the hotel. A trustee sale has been scheduled for November, but ongoing litigation could push that timeline.

For now, the future remains uncertain. Five Star is reportedly seeking new financing, which could resolve the dispute and restart work. But until then, one of Arizona’s most high-profile developments sits in limbo — leaving residents, buyers, and the town of Paradise Valley waiting to see how the next chapter unfolds.