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Duke, CBRE Realty Trust form joint venture

Tracy Donhardt
May 6, 2008
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Duke 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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  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

  2. Shouldn't this be a museum

  3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

  4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

  5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.

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