City Office REIT has acquired Block 23, a premier office building in downtown Phoenix, Arizona, for $150 million.
The 307,000 square foot property is an exceptional asset with strong tenancy, said City Office.
Block 23 is located in a highly desirable live-work-play environment in downtown Phoenix, immediately adjacent to dining, entertainment and transportation alternatives.
The newly constructed property was delivered in 2019 with best-in-class finishes, modern tenant suite buildouts and floor-to-ceiling windows on every floor.
The property is 94% leased to a tenant base that is approximately 70% investment grade, with a weighted average lease term remaining of approximately 12 years.
“Block 23 is a perfect fit to reinvest a portion of the proceeds from our recent Sorrento Mesa sale,” commented James Farrar, the Company’s Chief Executive Officer. “It is situated in a top location within our footprint of growing markets in the south and west. The vibrant location, new construction and full suite of on-site amenities has attracted an incredible base of growing tenants. Closing this transaction has enhanced our portfolio and will generate predictable, long-term cash flow for our shareholders.”