News release

Premier downtown Phoenix mixed-use development trades in record setting $150M sale

JLL Capital Markets led sales efforts for Block 23, which is a live-work-play destination in the epicenter of downtown

December 07, 2021

Kristen Murphy

Investor PR, Capital Markets, Hotels, Property Management, Valuation Advisory, Agency Leasing
+1 617 848 1572

PHOENIX, Dec. 7, 2021 – JLL Capital Markets announced today that it has closed the $150 million sale of Block 23, a premier mixed-use, live-work-play asset in the heart of downtown Phoenix, Arizona.

JLL represented the seller, an affiliate of RED Development, and procured the buyer, City Office REIT, Inc. (NYSE: CIO). The sale sets a new per square foot record in the city for multi-tenant office trades.

Completed in 2019, Block 23 has 307,030 square feet of Class A office, retail and amenity space highlighted by floor-to-ceiling windows, 360-degree skyline and mountain views and a market-leading amenity package, including a pickleball court, sky lobby, rooftop amenity deck and an on-site parking garage. In addition, Block 23 features Fry’s Fresh Marketplace, which is downtown’s only full-service grocer, and restaurant concepts Blanco Tacos & Tequila and Ingo’s Tasty Food. Overall, Block 23 is 95.5% leased by a diverse set of investment grade tenants, including Western Alliance Bank, EY and Chase.

Block 23 is positioned at the epicenter of downtown Phoenix at 101 E. Washington St. This vibrant live-work-play destination has immediate access to more than 1.8 million square feet of retail, more than 7,000 residential units and more than 4,500 hotel rooms within a mile radius of the property. In addition, Block 23 is immediately adjacent to CityScape Phoenix, a new 1.2 million-square-foot mixed-use property and is directly across from the Phoenix Suns Arena (Footprint Center) and close to the Arizona Diamondbacks Stadium (Chase Field).

The JLL Capital Markets team representing the seller was led by Senior Director Ben Geelan and Executive Managing Director Kevin MacKenzie. JLL Managing Director Ryan Timpani and Director Nick Bialkowski represented the seller on the leasing of Block 23.

“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,” Geelan said. “We have seen a robust interest from investors for newly constructed best-in-class mixed-use assets. RED Development delivered just that with Block 23. The dynamic live-work-play offering resulted in a record setting price for a multi-tenant mixed-use asset.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About Red Development

Founded in 1995, Red Development is a wholly integrated, full-service real estate company based in Phoenix. For more information, please visit the company’s website: reddevelopment.com