Esplanade III, a 222,820-square-foot trophy office building at 2415 E. Camelback Road, has changed hands in an $86 million sale. The 10-story property was acquired by Southwest Value Partners, described as a joint venture comprised of Transwestern and C-III Capital Partners.
According to the parties involved, Esplanade III offers institutional-scale office space in a multi-tenant configuration. The building is reported to be 83.4% leased, with a weighted average unexpired lease term of 4.4 years across the rent roll. The tenancy includes companies such as Vestar, Vanguard Realty Advisors, Barclay Group, Velocity Retail Group, Husch Blackwell and Pederson Group, Inc., as well as Velocity Retail Group, which is listed twice among the occupants.
JLL brokers Ben Geelan, Will Mast and Charlie von Arentschildt represented the seller in the transaction. Their role focused on marketing the property and advising the ownership on the disposition process, culminating in the $86 million trade to Southwest Value Partners.
Public records cited from Maricopa County show that the Transwestern partnership previously acquired Esplanade III in July 2019 for $60.2 million in an all-cash deal. That earlier transaction involved the purchase of the same office building by the Transwestern-led partnership that now forms part of the Southwest Value Partners joint venture. The new sale price therefore reflects a substantial gain over the prior recorded purchase amount.
The current leasing status and remaining lease term across the building suggest that a meaningful portion of income at Esplanade III is contractually secured for several more years. Named tenants from a mix of real estate, legal and advisory firms contribute to the property’s occupancy profile, although the article does not specify which companies occupy the largest blocks of space or the size of individual leases.
Beyond the identity of the buyer, the venture participants and the sale price, details such as the seller’s name, any financing structure, cap rate or business plan were not disclosed. Nonetheless, the combination of a trophy office designation, a high occupancy rate and a longer weighted average lease term provides context for why the asset was able to command an $86 million valuation at sale.
