Elliott, Morning Calm Take City Office REIT Private in $1.1B Deal
Elliott, Morning Calm Take City Office REIT Private in $1.1B Deal
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July 29, 2025 | New York City
U.S.-based firms Elliott Investment Management and Morning Calm Management have announced a $1.1 billion agreement to take City Office REIT private. The Vancouver-headquartered office landlord owns a 5.4 million-square-foot portfolio across key U.S. cities, including Dallas, Orlando, and San Diego. The deal is contingent on City Office successfully completing the $296 million sale of its Phoenix portfolio, comprising roughly 1.5 million square feet of office space.
The Phoenix assets include notable properties such as Block 23, Camelback Square, and Papago Technology Center. The sale is expected to close by August 14, with proceeds earmarked for debt repayment and corporate needs. Industry advisors on the deal include JLL, Raymond James, Eastdil Secured, and legal teams from DLA Piper and Gibson Dunn.
The transaction highlights a growing trend of public REITs going private amid persistent market discounts and uncertain office sector fundamentals. Despite headwinds, the buyer group is confident in the long-term strength of office assets in Sun Belt markets. City Office CEO James Farrar emphasized the deal's immediate value for shareholders amid a challenging operating environment.
As office REIT valuations remain under pressure, analysts expect more privatizations and mergers in the coming months. This transaction marks one of the first major take-private deals involving a Canadian office landlord in this cycle.
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