Block 23

JLL Brokers $150 Million Sale of Block 23 Office Property in Downtown Phoenix

by Julia Sanders

Phoenix — JLL Capital Markets has brokered the sale of Block 23 in downtown Phoenix for $150 million. Completed in 2019, the property consists of 307,030 square feet of Class A office, retail and amenity space.

Located at 101 E. Washington St., Block 23 is 95 percent occupied by tenants such as Western Alliance Bank, EY and Chase. The asset is immediately adjacent to CityScape Phoenix, a new 1.2 million-square-foot mixed-use property, and is directly across from Footprint Center where the Phoenix Suns play.

Block 23 is home to Fry’s Fresh Marketplace, as well as restaurant concepts Blanco Tacos & Tequila and Ingo’s Tasty Food. Amenities at the property include a pickleball court, sky lobby, rooftop amenity deck and onsite parking.

Ben Geelan and Kevin MacKenzie of JLL represented the seller, an affiliate of RED Development, and procured the buyer, City Office REIT Inc. (NYSE: CIO). Ryan Timpani and Nick Bialkwski of JLL represented the seller in the lease-up of the property. The sale sets a new per-square-foot record in the city for multi-tenant office trades, according to JLL.

“Block 23 has a superior long-term core location in downtown Phoenix, which has seen more than $6 billion of investment into the immediate area since 2005,” says Geelan.

Founded in 1995, RED Development is a full-service real estate company based in Phoenix. City Office REIT, which maintains offices in Vancouver and Dallas, invests in office properties primarily in the southern and western regions of the United States. Its stock price opened at $17.69 per share on Wednesday, Dec. 8, up from $9.51 per share one year ago.

— Kristin Hiller

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