Five Star Development plans to break ground later this year on The Palmeraie retail and dining destination, which is aiming for a concentration of luxury brands in the tenant mix.
Located in Scottsdale, Ariz., The Palmeraie will be connected to the $2 billion Ritz-Carlton, Paradise Valley master-planned community, also being developed by Five Star.
The initial phase of The Palmeraie will encompass approximately 160,000 square feet of high-end, mixed-use space on 18 acres at the corner of Scottsdale Road and Indian Bend, bordering the town of Paradise Valley. According to the developer, The Palmeraie will accommodate more than 60 luxury and specialty boutiques, as well as restaurants. An official said groundbreaking for The Palmeraie is expected sometime in the third or fourth quarters of this year.
A second phase is expected to include luxury residences, a gourmet grocery store and food emporium, and a boutique hotel.
“We’re creating a retail destination that will attract the most discerning shoppers from near and far,” said Jerry Ayoub, president of Five Star Development. He said The Palmeraie will have “a well-curated and unique merchant mix, innovative dining experiences, iconic and timeless architecture, over-the-top lush landscaping , awe-inspiring views and world-class amenities.” No tenants have been announced yet.
“Strategically situated in the heart of Scottsdale and Paradise Valley, The Palmeraie represents the birth of a new, authentic neighborhood and village that provides unprecedented access to the area’s prosperous residents and visitors,” said Hanna Struever, principal of Retail Portfolio Solutions, which is working with Five Star to attract luxury retailers.
Right next door is The Ritz-Carlton, Paradise Valley community also under development. It will include a 200-room resort surrounded by 94 single-level villas and 45 single-family homes.
Five Star Development, based in Scottsdale, Ariz., is a commercial real estate company that has developed more than 20 million square feet of residential, hospitality, industrial, office and retail real estate in the Southwest.