MCME Carell Closes $1.1B Acquisition of City Office REIT
MCME Carell has officially closed its acquisition of City Office REIT. The move was first announced in July 2025, in a deal that was valued at roughly $1.1 billion or $7 per share.
More than 98 percent of City Offices' voting shareholders supported the acquisition. With the deal taking the company private, City Office's stock is no longer listed on the New York Stock Exchange.
As of July 2025, City Office either fully or majority owned 5.4 million square feet of office properties. Most of the REIT's portfolio was concentrated in metro areas in the Southern and Western parts of the nation.
Currently, MCME, which is an affiliate of both Elliott Investment Management L.P. and Morning Calm Management, LLC, manages about $76.1 billion in total assets and roughly 11 million square feet of commercial real estate.
"This investment furthers our partnership with Elliott to pursue opportunities in the US commercial real estate space and underscores our partnership?s continued belief in the recovery of the office sector," Mukang Cho, Morning Calm CEO, said in a statement.
"We expect to continue to invest in high-quality commercial real estate assets where we see value resulting from the dislocation of the broader sector.?
Overall, office fundamentals nationally are starting to stabilize. A report from Yardi Matrix foundthat vacancy declined to 18.5 percent, with 16 out of the top 25 markets seeing dips. Another positive sign is that just 32.2 million square feet of office space is under construction, representing 0.5% of total stock, marking a 44% decline compared with last year.
Source: GlobeSt/ALM