Five Star Development announced that the U.S. Bankruptcy Court for the Southern District of Texas has entered a Final Villa Sales Order confirming clean, insurable title and full buyer protections for Villa sales at The Ritz-Carlton, Paradise Valley, The Palmeraie.
The Court’s Order establishes a clear, Court-approved framework for Villa closings and provides certainty to buyers, lenders, and title insurers that Villa transactions may close as scheduled, with finality, and without risk of later challenge.
Villa closings may now proceed without interference from any lienholder, with all liens, including mechanics’ liens- attaching solely to net sale proceeds rather than the Villas themselves. The order grants federal “good-faith purchaser” protections, ensuring completed transactions cannot be unwound even in the event of an appeal, while authorizing title insurers to issue clean, fully insurable title with confidence. Proceeds from each sale will be held in a court-supervised escrow, preserving value and providing certainty for buyers, lenders, and all parties involved.
“The Court’s Order gives buyers the strongest protection available under federal law and removes any uncertainty from the closing process,” said Lance Miller, Chief Restructuring Officer of Five Star Development and Managing Partner of Pivot >. “It locks in clean, insurable title and ensures Villa closings move forward with confidence and finality while broader matters proceed under court supervision.”
The Order was entered in Five Star’s chapter 11 case, which was filed to address an ongoing lender dispute. Throughout the proceedings, Five Star has continued to operate in the ordinary course, maintaining full control of the Project and advancing Villa sales and closings—providing stability, continuity, and certainty for buyers, residents, and partners.
Following an initial sell-out and sustained strong demand, Five Star has released a limited number of select Villas, offered first to its extensive, pre-qualified prospective buyer list under the Court-approved sales framework.
Beyond residential sales, Five Star continues to curate a best-in-class experience at the Palmeraie through active engagement with leading global luxury retail brands. Homeowners and residents continue to enjoy full Ritz-Carlton-managed services and one-of-a-kind amenities, while the Company manages design coordination, contractor planning, and financing discussions in preparation for a full construction restart, subject to required Court approvals.
“Our vision has always been about creating an exceptional destination that reflects the character and beauty of Paradise Valley and Scottsdale,” said Jerry Ayoub, Principal and Founder of Five Star Development. “With this Order in place, we remain focused on executing that vision with the Ritz-Carlton-caliber quality, service, and integrity that makes this property an extraordinary place to call home.”
