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Duke Realty selling 82 office buildings for $1.1B

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Duke Realty Corp. said on Friday that it is selling its suburban office holdings in seven major markets to New York-based Blackstone Group LP, the world’s largest private equity firm, for $1.08 billion.

The sale includes 82 buildings with a combined 10.1 million square feet of space in Atlanta, Chicago, Columbus, Dallas, Minneapolis, Orlando and Tampa.

The sale does not include any properties in Indiana, a company spokeswoman said.

“The portfolio sale is simply a continuation of our strategic plan to reduce our investment in suburban office properties,” Denny Oklak, CEO of Indianapolis-based Duke, said in a prepared statement.

The company said its long-term goal is have 60 percent of its holdings in industrial, 25 percent in office and 15 percent in medical office.

“The transaction generates over $1 billion of capital for the acquisition and development of industrial and medical office assets, and to further de-lever the company's balance sheet,” Oklak said.

Almost 85 percent of the office space Duke is selling is leased and the buildings have an average age of 15 years. Blackstone will take over the leasing and property management responsibility for the buildings.

Blackstone is on a real estate buying spree this year, investing more than $7 billion. The firm is aiming to capitalize on the sharp decline in property values in the wake of the financial crisis.

Shares of Duke rose almost 5 percent on the news Friday, as the broader market also rallied. In late-morning trading, the shares went for $11.20 apiece.

 
 

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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