California company buys downtown Phoenix office tower for $17 million

Article originally posted on AZ Central on July 2, 2025

A California-based clothing manufacturer bought the 111 West Monroe tower in downtown Phoenix and plans to relocate its headquarters there.

Kellwood Company, a maker of girls’ and women’s clothing, bought the building for $17.08 million, according to real estate database Vizzda.

“The acquisition of 111 West Monroe marks the beginning of an exciting new chapter for Kellwood, and we look forward to moving our headquarters to downtown Phoenix in the coming months,” David Falwell, Kellwood’s CEO, said in a statement.

“We believe that our presence can serve as a magnet for other companies in the creative arts, including those considering relocating to Arizona from out of state. We are committed to ensuring that this remains a premier location for innovative businesses in the years to come,” he added.

The 19-story tower located at First Avenue and Monroe Street was built in 1964 and underwent an extensive renovation in 2019. Newmark executive managing directors CJ Osbrink, Barry Gabel and Chris Marchildon represented the seller, an affiliate of Granite Pointe Mortgage Trust, in the sale.

High-profile building sales have been slow this year, with only five office building sales, including medical offices, fetching more than $20 million, according to data from real estate analytics firm CoStar Group.

Office vacancy has been hovering at a record high nationally, with about 19% of office space in the country vacant. In Phoenix, office properties had about a 22.1% vacancy rate at the end of the first quarter of 2025, according to Colliers International research.