City Office REIT Completes Initial Closing of Phoenix Portfolio for $266 Million

City Office REIT Announces First Closing of Phoenix Portfolio Sale

City Office REIT, Inc. (listed as NYSE: CIO) recently confirmed the successful completion of its initial closing in the sale of its Phoenix portfolio, which boasts gross proceeds amounting to $266 million. This significant transaction includes six of the seven properties that the company holds in the Phoenix area, excluding its Pima Center property, which is still under contract with an anticipated sales price of $30 million.

Overview of the Sale

The announcement came on August 15, 2025, marking an important milestone for City Office REIT as they navigate through their strategic changes in portfolio management. The pending sale of Pima Center is still in the works and is subject to various approvals relating to its ground lease, with the final closing to occur at a later time.

This closing event satisfies an essential condition outlined in a merger agreement between City Office and its partners, MCME Carell Holdings, LP, and MCME Carell Merger Sub, LLC. This agreement was finalized on July 23, 2025, and the sale forms a crucial component of the broader transaction plan.

The Company Behind the Sale

City Office REIT operates as an internally managed real estate investment trust (REIT) specializing in acquiring, owning, and managing commercial office properties, primarily located in the lucrative Sun Belt markets. As a significant player in the real estate sector, City Office focuses on maximizing its investment yield and shareholder value, boasting a portfolio that comprises over 4.2 million square feet of office space.

As they continue to refine their strategic approach, the company's management believes this sale will enhance financial performance and provide additional resources to pursue further investments.

Forward-Looking Statements

The recent press release from City Office includes forward-looking statements that reflect management's current beliefs regarding future outcomes based on existing information and estimates. Statements regarding the company’s anticipated financial performance, expected closing times for transactions, and broader economic conditions are included, underscoring the evolving landscape of commercial real estate.

City Office advises investors to exercise caution in placing reliance on these forward-looking statements, acknowledging that actual results may diverge significantly from the company's projections due to various market factors.

Future Prospects

As City Office progresses with the remaining properties in its Phoenix portfolio, attention will be directed towards potential future opportunities that could arise from the merger agreement and the unfolding market dynamics. Stakeholders and analysts alike will be closely observing how these developments shape the company’s operational strategy and market positioning over time.

Shareholders, in particular, are encouraged to stay informed regarding forthcoming updates, as these will detail not only the merger transactions but also the company's ongoing initiatives aimed at strengthening its market foothold. More comprehensive details will be available in future proxy statements set to be filed with the SEC.

For company-related inquiries or additional information, shareholders can reach out to the investor relations division of City Office REIT, underscoring the organization’s commitment to transparency and investor engagement.

Conclusion

In conclusion, the first closing of the Phoenix portfolio sale marks a pivotal juncture for City Office REIT, setting the stage for future endeavors within the ever-evolving landscape of commercial real estate. The announced transaction not only reflects the company’s strategic vision but also its ongoing commitment to enhancing shareholder value through prudent management and decisive actions in the marketplace.