A joint venture between Partners Group, a global private markets firm, acting on behalf of its clients, and funds managed by Trinity Investments has acquired the Scottsdale Plaza Resort & Villas located in Paradise Valley, AZ. Terms of the transaction were not disclosed.
The resort features 404 rooms spread across the central hotel and surrounding villa suites, as well as 50,000 sq. ft. of meeting space. The transaction also includes the potential for expansion with entitlements secured by the seller, a joint venture between Rockpoint, a Boston-based real estate private equity firm, and Highgate.
The property is located on nearly 40 acres of land and is directly adjacent to The Ritz-Carlton Hotel & Residences, Paradise Valley and its surrounding developments.
“The Scottsdale Plaza Resort & Villas is a prime example of an excellent property coming to market in need of a significant capital investment from a partnership like Trinity and Partners Group that can deliver a development plan for future growth,” said Sean Hehir, managing partner/president/CEO, Trinity. “We are pleased to work with Partners Group again as we execute on our repositioning and enhancement plan for this already well-performing asset.”
This acquisition extends the partnership between the two firms, which began with their first joint venture in 2022 with The Las Colinas Resort in Dallas, which recently converted to The Ritz-Carlton Dallas, Las Colinas.
Jason Longo, senior investment leader, Partners Group, added, “Trinity has been an excellent partner in creating, managing and delivering additional value on our joint investments. I am looking forward to continuing to build our real assets portfolio and platform together.”
As part of its acquisition strategy, Trinity will execute a targeted capital plan intended to create a cohesive resort experience. The resort, a member of Preferred Hotels & Resorts will remain unencumbered of brand and will continue to be managed by Highgate.
“Rockpoint and Highgate executed on a shared vision for the resort, and we are pleased to have added significant value through several property enhancements, expense saving initiatives and strategic revenue optimization,” said Aric Shalev, co-president/managing member, Rockpoint. “This investment underscores Rockpoint’s ability to collaborate with best-in-class operating partners and identify and add value to high-quality assets in high-growth markets. We believe the resort is well positioned to build on its rich heritage under new ownership.”
Zach Berger, principal, Highgate, added, “Highgate is pleased to have partnered with Rockpoint on Scottsdale Plaza Resort & Villas, and to have successfully executed on our value-add plan and delivered strong results. We look forward to Highgate’s continued role operating the resort in conjunction with the buyer, and anticipate continuing to pursue the many opportunities to enhance this exceptional property.”