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.<\/p>\n
The sale, completed earlier this month, includes properties across several of the Valley\u2019s 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.<\/p>\n
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\u2019s closing.<\/p>\n
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.<\/p>\n
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.<\/p>\n
For the buyer, Southwest Value Partners, the deal brings its Phoenix office portfolio to more than 2 million square feet.<\/p>\n
\u201cThis acquisition reflects our continuing belief in greater Phoenix as a dynamic, growing and resilient market,\u201d said Mark Schlossberg, principal and co-managing partner of Southwest Value Partners.<\/p>\n
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, caf\u00e9s and improved conference facilities.<\/p>\n
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.<\/p>\n
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 \u2014 an anomaly compared with what has been common in other markets so far this year.<\/p>\n","protected":false},"excerpt":{"rendered":"
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\u2019s 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…<\/p>\n","protected":false},"author":3163,"featured_media":4814,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-4813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-office-news"],"acf":[],"yoast_head":"\n