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Phoenix office building Esplanade III sells for $86M
The 10-story, 222K SF Class-A asset was previously bought in 2019 for $60.2M, and it is reportedly 83.4% leased.
A 10-story Class-A office building in Phoenix’s Camelback Corridor, Esplanade III, sold for $86M, marking the market’s largest single-building office deal of the year, the Phoenix Business Journal reported, according to Bisnow.
Southwest Value Partners bought the 222K SF property. An LLC tied to Transwestern and C-III Capital Partners was the seller, with JLL representing the transaction.
Esplanade III, part of the 1.3M SF Esplanade mixed-use campus, was acquired by the seller partnership in 2019 for $60.2M. The campus has been renovated in recent years and Esplanade III is reportedly 83.4% leased by tenants including Vanguard Realty Advisors, Barclay Group, Velocity Retail Group, Husch Blackwell, and Pederson Group.
Bisnow also noted that Phoenix’s office leasing activity totaled about 1.1M SF in the second quarter, up from 924K SF in the first quarter, with growth driven largely by Class-A properties, according to CBRE and Cushman & Wakefield. JLL Capital Markets managing director Will Mast said the transaction reflects continued demand for best-in-class office locations in the Camelback Corridor and broader Sun Belt.