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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowDuke Realty Corp. and CB Richard Ellis Realty Trust have formed a joint venture that will buy from Duke up to $800 million of industrial buildings over the next three years.
The agreement calls for the joint venture to buy six properties this year. The properties span 5.2 million square feet and are valued at $250 million.
Included in the deal are AllPoints at Anson Building 1, which is being built for Amazon.com in Boone County, and AllPoints Midwest Building 1 in Plainfield, which houses Prime Distribution Services. Both buildings are warehouses.
Today’s announcement is the latest in a strategy by Duke to free assets to be reinvested in other developments. Duke has a similar joint venture with JP Morgan that includes properties in Park 100 on the northwest side, and another with Eaton Vance for properties in the Washington, D.C., area.
In the CB Richard Ellis Realty Trust deal, properties will be acquired by the yet-unnamed joint venture company once leasing begins on the completed buildings. Duke will be paid fees related to construction, management and leasing of the properties.
“This venture will allow Duke to retain an interest in key bulk industrial build-to-suit projects, recycle a significant amount of capital, and strengthen its private capital track record with the ultimate goal of launching additional funds,” said Duke CEO Denny Oklak in a statement.
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