Southwest Value Partners Buys $266 Million Phoenix Office Portfolio
Southwest Value Partners has acquired a six-building Phoenix office portfolio from City Office real estate investment trust (REIT) for $266 million in one of the larger office sales in the metro in recent years.
The sale, completed earlier this month, includes properties across several of the Valley’s submarkets, including: Block 23 in downtown Phoenix; 5090 N. 40th St. in the Camelback Corridor; SanTan in Chandler; Papago Tech in Tempe; and The Quad and Camelback Square in Scottsdale.
In all, the assets total approximately 1.25 million square feet of Class A office space and were roughly 80% leased at the time of the deal’s closing.
City Office, a REIT that specializes in Sun Belt markets, has been selling off its Phoenix holdings as part of a planned $1.1 billion privatization. This recent sale was required to take the next step toward completing its merger with MCME Carrell Holdings.
City Office has one remaining Phoenix office property under contract, Pima Center, which is expected to trade for around $30 million pending ground-lease approval.
For the buyer, Southwest Value Partners, the deal brings its Phoenix office portfolio to more than 2 million square feet.
“This acquisition reflects our continuing belief in greater Phoenix as a dynamic, growing and resilient market,” said Mark Schlossberg, principal and co-managing partner of Southwest Value Partners.
The firm, which is co-headquartered in San Diego and Nashville, Tenn., reportedly plans to renovate and upgrade the newly acquired buildings with tenant amenities, such as fitness centers, cafés and improved conference facilities.
JLL represented City Office REIT in the sale, led by Senior Managing Director, Ben Geelan, alongside Managing Director, Will Mast, and Senior Director, Charlie von Arentschildt.
Phoenix Office Sales Prices Rising
The timing of the portfolio sale comes as Phoenix posted its first price-per-foot increase in three years in July. According to Yardi Research data, the average sale price rose from $165 per square foot in 2024 to $197 in 2025. Based on the 34 properties sold for a published transaction amount and with a history of two or more sales, only seven traded at a discount to their previous price — an anomaly compared with what has been common in other markets so far this year.