MCME Carell Buys City Office REIT for $1B

January 12, 2026

The trust traded for $7 per share of common stock.

MCME Carell, a joint venture between Elliott Investment Management LP and Morning Calm Management, has purchased City Office REIT. The partnership acquired the investment trust for $7 per share of common stock.

The transaction was valued at approximately $1.1 billion when it was initially announced, including the assumption or repayment of debt, the redemption of the company’s issued and outstanding preferred stock and the sale of its Phoenix portfolio.

More than 98 percent of voting stockholders supported the acquisition, City Office REIT CEO James Farrar said in prepared remarks.

The transaction valued the company at a 26 percent premium to City Office’s NYSE closing share price on the last trading day prior to the deal’s July announcement, and a 39 percent premium to the stock’s 90-day volume weighted average share price.

City Office REIT mainly focused on acquiring, owning and operating office properties in Sun Belt markets. The trust owned or controlled interest in 5.4 million square feet of office space.

Raymond James & Associates and JLL Securities acted as City Office’s exclusive financial advisors. DLA Piper LLP served as its special M&A legal counsel and Hogan Lovells US served as corporate legal counsel. Eastdil Secured acted as the buyer’s financial advisor, while Gibson Dunn & Crutcher served as its legal counsel.

MCME Carell’s previous office expansion

As of June, Elliott Investment managed about $76.1 billion in assets. Morning Calm Management owned approximately 11 million square feet of commercial space on behalf of institutional and private capital investors.

In October 2024, the duo formed a joint venture for the acquisition of 701 Brickell, a 685,279-square-foot office tower in Miami. Nuveen Real Estate sold the asset for $443 million in an all-cash deal.