Last week Southwest Value Partners announced the acquisition of seven premier office properties across the Greater Phoenix Metropolitan Area totaling approximately 1.53 million square feet for a purchase price of $296 million.
The assets span key submarkets including Downtown Phoenix, the Camelback Corridor, Scottsdale, Tempe, and Chandler.
“This acquisition reflects our continuing belief in Greater Phoenix as a dynamic, growing, and resilient market.” Said Mark Schlossberg, Principal and Co-Managing Partner, “We’re proud to acquire this portfolio of high-quality assets.”
SWVP, led by Principals and Co-Managing Partners Mark Schlossberg and Cary Mack, is a privately held real estate investment company that invests in institutional quality real estate located in growth markets throughout the United States. The firm has a disciplined, high-energy approach to asset acquisition, operating execution, value creation, and asset disposition.
“We’re excited to apply our expertise to these properties and to bring them to their full potential”, Cary Mack, Principal and Co-Managing Partner, added, “Our goal is to maintain a focus on pursuing further real estate investments in Phoenix as we believe the long-term fundamentals in this market are very strong.”
The company also owns the Arroyo office campus in North Tempe, which includes four office buildings totaling 450,000 square feet. With this new acquisition, SWVP now owns approximately 2.0 million square feet across eight high-quality office projects in Greater Phoenix.
“These are proven, institutional-quality assets in prime locations throughout the Valley.” Justin Merritt, Managing Director and Partner, stated, “As we continue to see employees fully return to the office, we believe the demand for high-quality space in Phoenix will continue to grow, and this portfolio is well-positioned to meet the needs of those tenants.”
“This portfolio represented a unique opportunity for SWVP to acquire well-located buildings in the best-performing office submarkets in Metropolitan Phoenix. In addition, all of the buildings have undergone substantial recent renovations to address the evolving needs of post-pandemic employers.” Bryan Taute, Executive Managing Director, Jones Lang LaSalle (JLL), commented, “We continue to see great leasing momentum and strong rent growth for the higher-quality buildings. With extremely limited new construction, we anticipate continued rent growth for these types of properties for the foreseeable future.”
