Five Star Development Files Chapter 11 to Safeguard Ritz-Carlton Paradise Valley Project and Advance The Palmeraie Completion
In a significant move to secure the future of its ambitious project, Five Star Development, LLC, along with its affiliates, has initiated Chapter 11 bankruptcy proceedings intended to protect the Ritz-Carlton Paradise Valley and advance the completion of the Palmeraie project. This strategic decision, made by the company on November 4, 2025, was filed in the U.S. Bankruptcy Court for the Southern District of Texas, aiming to streamline processes under judicial oversight to ensure the successful completion of a 122-acre resort and residential luxury development.
The Palmeraie is poised to be a premier destination, encompassing not only the luxurious Ritz-Carlton resort but also villas, estate homes, and a vibrant retail district. As construction approaches its final phases, all infrastructure work is reportedly complete, and finishing touches on the interiors are set to begin pending court approvals. The development will ultimately feature a 215-room Ritz-Carlton resort along with 80 branded villas and 32 estate homes, alongside a 29-acre area dedicated to luxury retail and dining options.
Gerald C. Ayoub, the founder and principal of Five Star Development, expressed the company’s commitment to delivering this project, which is critical to the community and the Ritz-Carlton brand. He emphasized the need for a clear, structured path to finish the development, which had seen some challenges leading to this necessary legal recourse.
The filing for Chapter 11 enables Five Star to maintain control over the project, effectively protecting its stakeholders and ensuring that construction can resume smoothly. This protection includes a halting of certain creditor actions, specifically referencing issues with Madison Realty Capital, the project’s secured lender, which a Texas state court identified as having acted inappropriately in dealings with Five Star.
Lance Miller, the Chief Restructuring Officer for Five Star Development, reiterated the goal of this filing: to maintain the momentum already achieved on the project and secure its successful completion. He reassured the public that normal operations across all project sites would continue unhindered throughout this process, preserving services for homeowners and residents.
Five Star Development stands out as a reputable commercial real estate developer, boasting a robust portfolio of high-value projects across the Southwest since its inception in 1978. To date, the firm has developed over 20 million square feet of diverse real estate, totaling investments exceeding $3.5 billion. With more than 7 million square feet of income-generating properties currently under management, Five Star remains committed to its mission of delivering transformative developments.
The unfolding of the Chapter 11 proceedings brings attention to both the challenges and resilience within the real estate market, especially in the luxury sector. As Five Star navigates this legal strategy, the community eagerly anticipates the completion of The Ritz-Carlton Paradise Valley and The Palmeraie, which promise to be significant additions to Arizona's landscape.
As the situation develops, more information about the Chapter 11 process, relevant court documents, and claims can be accessed through designated online resources. Five Star Development is being represented in these proceedings by O'Melveny & Myers LLP, supported by the Pivot Management Group as administrative advisors.
This strategic maneuver not only ensures stakeholder interest is preserved but also reinforces the company’s commitment to contributing to the luxury hospitality and residential markets in Arizona.
Through the challenges presented, Five Star continues to uphold its dedication to quality and innovation in real estate development, as illustrated by The Palmeraie project, a centerpiece for future endeavors.
The Palmeraie is poised to be a premier destination, encompassing not only the luxurious Ritz-Carlton resort but also villas, estate homes, and a vibrant retail district. As construction approaches its final phases, all infrastructure work is reportedly complete, and finishing touches on the interiors are set to begin pending court approvals. The development will ultimately feature a 215-room Ritz-Carlton resort along with 80 branded villas and 32 estate homes, alongside a 29-acre area dedicated to luxury retail and dining options.
Gerald C. Ayoub, the founder and principal of Five Star Development, expressed the company’s commitment to delivering this project, which is critical to the community and the Ritz-Carlton brand. He emphasized the need for a clear, structured path to finish the development, which had seen some challenges leading to this necessary legal recourse.
The filing for Chapter 11 enables Five Star to maintain control over the project, effectively protecting its stakeholders and ensuring that construction can resume smoothly. This protection includes a halting of certain creditor actions, specifically referencing issues with Madison Realty Capital, the project’s secured lender, which a Texas state court identified as having acted inappropriately in dealings with Five Star.
Lance Miller, the Chief Restructuring Officer for Five Star Development, reiterated the goal of this filing: to maintain the momentum already achieved on the project and secure its successful completion. He reassured the public that normal operations across all project sites would continue unhindered throughout this process, preserving services for homeowners and residents.
Five Star Development stands out as a reputable commercial real estate developer, boasting a robust portfolio of high-value projects across the Southwest since its inception in 1978. To date, the firm has developed over 20 million square feet of diverse real estate, totaling investments exceeding $3.5 billion. With more than 7 million square feet of income-generating properties currently under management, Five Star remains committed to its mission of delivering transformative developments.
The unfolding of the Chapter 11 proceedings brings attention to both the challenges and resilience within the real estate market, especially in the luxury sector. As Five Star navigates this legal strategy, the community eagerly anticipates the completion of The Ritz-Carlton Paradise Valley and The Palmeraie, which promise to be significant additions to Arizona's landscape.
As the situation develops, more information about the Chapter 11 process, relevant court documents, and claims can be accessed through designated online resources. Five Star Development is being represented in these proceedings by O'Melveny & Myers LLP, supported by the Pivot Management Group as administrative advisors.
This strategic maneuver not only ensures stakeholder interest is preserved but also reinforces the company’s commitment to contributing to the luxury hospitality and residential markets in Arizona.
Through the challenges presented, Five Star continues to uphold its dedication to quality and innovation in real estate development, as illustrated by The Palmeraie project, a centerpiece for future endeavors.
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