A 185,536-square-foot office tower on Phoenix's Camelback Corridor has landed $69.3 million in refinancing, with JLL Capital Markets arranging the five-year, fixed-rate loan from PGIM on behalf of owner RED Development. The deal replaces financing the developer had obtained in 2023 from Western Alliance Bank, and the collateral stretches well beyond the office floors themselves.
According to CommercialSearch, which first reported the deal, the building at 4300 East Camelback Road is fully leased to investment-grade tenants. JLL, however, describes the tenancy mix differently, putting investment-grade occupancy at 69 percent — the two accounts don't reconcile on that specific figure. Tenants in the building include JPMorgan Chase, Clayco, First Solar, JLL, PwC, Caterpillar and Aon, per the CommercialSearch report.
What Backed the Loan
The four-story Class AA building, completed in the fourth quarter of 2022, serves as the office centerpiece of The Grove, a mixed-use development spanning more than 750,000 square feet. The refinancing collateral consisted of the office building itself along with Pyro restaurant, two retail spaces and an underground parking facility, the JLL announcement states. The property has achieved LEED certification and offers 631 parking spaces in a shared structured garage.
The building's amenities lean into the Phoenix lifestyle that's become a selling point for Class AA office space: a rooftop pickleball court and pavilion, first-floor dining at Pyro — a Japanese izakaya bistro operated by Flagship Restaurant Group — and views of Camelback Mountain. The broader Grove development around it includes the Global Ambassador boutique hotel, 58 upmarket residential units at The Bergen, a Banner Health Center Plus medical facility, and the Verizon 5G Performance Center, which is home to the Phoenix Suns training facility.
Who Put the Deal Together
JLL's Debt Advisory team represented RED Development in the transaction. The team was led by Kevin MacKenzie, president of JLL Capital Markets' Debt Advisory practice, alongside senior director Jason Carlos and associate Frank Choumas, according to the firm's announcement.
A Market Still Finding Its Footing
The refinancing lands in a Phoenix office market that depends heavily on which yardstick you use. As of midyear 2026, conditions were relatively strong, with vacancies edging lower and remaining below the national average while asking rents climbed year over year and construction activity stayed moderate, per the same CommercialSearch report. A separate midyear reading put Phoenix's office vacancy rate at 16.5 percent in June, down 60 basis points from a year earlier and well below the 17.7 percent national figure, with average listing rates at $29.58 per square foot — a 2.5 percent increase from the prior year.
By the third quarter, though, a different measure from Kidder Mathews put overall Phoenix office vacancy at 23.7 percent, down just 10 basis points from the same period in 2025. Leasing activity in that quarter reached 1,296,066 square feet, though year-to-date leasing was down 12.2 percent compared with 2025. Phoenix still managed 23,600 square feet of positive direct net absorption in the third quarter, according to AZ Big Media, a sign the market was inching toward stabilization even as the headline vacancy rate stayed elevated.
Sales and Construction Activity Around the Valley
Investment dollars have kept flowing into Phoenix offices even amid the mixed vacancy picture. Office-asset sales volume reached $711.1 million year to date through June, ranking the metro 10th nationally — behind only Dallas and Houston among comparable markets, and ahead of Atlanta and Denver, per CommercialSearch's market update. Assets traded for roughly $184 per square foot on average in June, just under the $195 national figure. Phoenix's largest office sale of the third quarter was Camelback Esplanade III, which sold for $86 million, or $387.67 per square foot, according to Kidder Mathews.
New construction, meanwhile, has stayed tight. Phoenix's office development pipeline totaled 583,552 square feet as of June, and by the third quarter, only three projects totaling 584,000 square feet were under construction across the metro — all of them build-to-suit, according to C2 Brokerage.
Other Recent Leasing and Development Moves
Elsewhere in downtown Phoenix, Trinity Capital signed a long-term lease in October at 333 Tower on North Central Avenue, taking the top two-and-a-half floors and securing building-top signage rights, with Foundation 8 as landlord and Newmark brokering the deal, per the CommercialSearch report. And in August, Trammell Crow Co. and U.S. Realty Advisors completed the 145,000-square-foot office component of Sprouts Farmers Market's Phoenix corporate headquarters, a property that also includes a 25,000-square-foot flagship grocery store and 11,000 square feet of additional retail space.
