Bud sent up first-rate state (5)
I believe the answer is:
dubai
'state' is the definition.
(I've seen this before)
'bud sent up first-rate' is the wordplay.
'sent up' says the letters should be written backwards.
'first-rate' becomes 'ai' (resembles A1, informal term for excellent).
'bud' in reverse letter order is 'dub'.
'dub'+'ai'='DUBAI'
(Other definitions for dubai that I've seen before include "Country" , "Arab city" , "Persian Gulf state" , "sheikdom?" , "One of the UAE and its capital" .)