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Esplanade office complex in Phoenix to be acquired by New York investors

Esplanade.jpg
Posted at 8:59 AM, Dec 13, 2021
and last updated 2021-12-13 10:59:33-05

A partnership led by Monarch Alternative Capital is reportedly planning to buy four of the Esplanade buildings in the Camelback corridor of Phoenix, according to a report.

Real Estate Alert reported the New York-based hedge fund operator is partnering with Tourmaline Capital Partners in the deal, which is expected to be worth “about $385 million.” The seller is a partnership between Clarion Partners and LBA Realty.

Representatives from the ownership declined to comment on the deal, which is not yet closed.

The buildings total about 1 million square feet of office space at 24th Street and Camelback Road. Clarion Partners and LBA Realty bought the property in 2015 for $244.9 million, the largest office sale of that year. Tenants in the complex include CBRE Group Inc., Cushman & Wakefield, Gensler, Transwestern and WeWork. The complex is about 80% occupied.

The Esplanade includes five buildings total, but only four were part of the sale. The third building in the complex is owned by Transwestern and an institutional partner, doing business as Esplanade III Owner LLC. That group bought the building in 2019 for $60 million. 

Read more of this story from the Business Journal.