 It further conflates the issue to imply that Villa Triste would not be grammatically correct. Of course, it would be correct. Provided, that the both words, Villa and Triste parts of the same name. Otherwise we would have new Orleans instead of New Orleans or new York instead of New York.  New York was both the name of a place and a new place at the same time it was named so why are you arguing that in a case where both meanings are relevant that the non-capitalization of an adjective supersedes its being capitalized as a place name?  