JLL Arranges $69.3M PGIM Refinancing for The Offices at The Grove in Phoenix's Camelback Corridor

PHOENIX, Nov. 2, 2026 – JLL Capital Markets announced today that it has arranged $69.3 million in refinancing for The Offices at The Grove, a 185,536-square-foot Class AA office building at 4300 East Camelback Road in Phoenix's Camelback Corridor submarket. JLL's Debt Advisory team represented the borrower, RED Development, in placing the five-year, fixed-rate loan with PGIM's real estate investment group.

Loan Details and Deal Team

The $69.3 million loan carries a five-year term at a fixed rate. The financing collateral consisted of the office building, the Pyro restaurant, two retail spaces and an underground parking facility. Based on the loan amount and the office building's size, the financing equates to roughly $373 per square foot of office space. That figure is a loan-to-size measure rather than a sale price or appraised value.

JLL's Debt Advisory team representing RED Development was led by Kevin MacKenzie, President, JLL Capital Markets Americas, Senior Director Jason Carlos and Associate Frank Choumas.

"This transaction exemplifies lender confidence in best-in-class office assets with exceptional tenant credit and long-term lease commitments in irreplaceable locations," said MacKenzie. "The Offices at The Grove's achievement of 100% pre-leasing prior to delivery and its sustained full occupancy demonstrates the strength of RED's execution and the compelling value proposition of this location."

Trent Brown, Executive Director, Originations, PGIM's real estate investment group, said: "The Offices at The Grove represents the type of high-quality office asset that we seek to finance, with strong investment-grade tenancy, modern amenities, and a prime location in one of Phoenix's most desirable and supply-constrained submarkets. The property's sustained occupancy levels and strong tenant credit reflect the continued demand for best-in-class office space. We are pleased to partner with RED and provide financing for this exceptional asset."

Property Profile: Fully Leased Class AA Office

The Offices at The Grove is a four-story building completed in the fourth quarter of 2022. It was 100% pre-leased at delivery and remains fully occupied, with 69% investment-grade tenancy. Tenants include JPMorgan Chase, Clayco, First Solar, JLL, PwC, Caterpillar and Aon.

The building features a rooftop pickleball court and pavilion, first-floor dining with Pyro, a Japanese izakaya bistro operated by Flagship Restaurant Group, views of Camelback Mountain and 631 parking spaces in shared structured parking. It has achieved LEED certification and incorporates building systems and technology infrastructure.

The office building anchors The Grove, a mixed-use development of more than 750,000 square feet. The project includes more than 180,000 square feet of Class AA office space, The Global Ambassador boutique hotel by restaurateur Sam Fox, 58 luxury residential units at The Bergen, a Banner Health Center Plus medical facility, and the Verizon 5G Performance Center, home to the training facilities of the NBA's Phoenix Suns and WNBA's Phoenix Mercury. The development also includes dining and retail.

Camelback Corridor Submarket Context

The property sits at the intersection of 44th Street and Camelback Road. The location offers walkable access to more than 180 restaurants and bars, 4.1 million square feet of retail, including Biltmore Fashion Park and Camelback Village Center, and more than 7,000 apartment units.

JLL described the Camelback Corridor as Phoenix Metro's premier office submarket, with the highest Class A office rents in the market and a concentration of institutional ownership. The submarket has no new office assets under construction and high barriers to entry because of land constraints and affluent residential neighborhoods. Its supply is limited to 30 Class A office buildings totaling 5.1 million square feet.

Market data shows the submarket performing ahead of the broader metro. Marcus & Millichap reported that Camelback leasing increased nearly 50% year over year and that submarket vacancy declined by more than 200 basis points in 2026. Cushman & Wakefield recorded 246,594 square feet of third-quarter leasing in the corridor, the highest among Phoenix submarkets and nearly one-fifth of the metro total. Kidder Mathews identified Camelback as the strongest Phoenix submarket for third-quarter net absorption, at 199,337 square feet.

Phoenix Office Market Backdrop

The refinancing comes as Phoenix's overall office market remains soft. Metro office vacancy was 25.1% in the third quarter of 2026, while leasing activity fell 14.6% quarter over quarter to 1.3 million square feet. Other market surveys put vacancy at 23.7%, with Class A vacancy at 28.3%.

Newer, higher-quality product has performed better. Lincoln Property Company reported Class AA vacancy of 14.5% in the third quarter, with asking rents of approximately $80 per square foot. Class AA buildings in Phoenix have been achieving vacancy rates roughly half the metro average, with top-tier asking rents projected to reach the $80s per square foot by year-end 2026.

The Offices at The Grove has several characteristics that align with that segment: construction completed in 2022, full occupancy since delivery, substantial investment-grade tenancy and an amenity-rich, mixed-use setting in a supply-constrained submarket.

Market Implications

The transaction illustrates how debt capital is being directed toward Phoenix office assets with durable occupancy and strong tenant credit. For RED Development, the five-year fixed-rate loan provides a defined financing term on a fully leased property. For PGIM, the loan adds exposure to a recently built asset in the Camelback Corridor.

JLL's Capital Markets group provides capital solutions including investment sales and advisory, debt advisory, loan sales, and equity and fund placement, with more than 3,000 specialists in offices in nearly 50 countries. PGIM, the global asset management business of Prudential Financial, Inc., reported $213 billion in gross real estate assets under management and administration as of March 31, 2026. RED Development is a commercial real estate company with a mixed-use and retail portfolio across the Southwest and Midwest.

Sources

• JLL Newsroom: JLL arranges refinancing for The Offices at The Grove