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Duke Realty sells six-building local office complex

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Two Illinois companies have acquired a six-building, 446,000-square-foot Indianapolis flex office complex from locally based Duke Realty Corp.

Duke sold the Hillsdale Technecenter, situated east of Interstate 465 and Interstate 69 on the northeast side, as part of an ongoing plan to reduce its ownership of suburban office buildings.

Financial terms of the deal, which closed in December, were not disclosed, but industry sources said the buildings sold for more than $20 million, or $45 per square foot.

The buyers, Middleton Partners and Romanek Properties, hope to build on an 88-percent occupancy rate for the buildings and potentially expand the complex. Key tenants include Verizon Wireless, with about 38,400 square feet; Community Health, with 34,300 square feet; and Ingersoll-Rand, with 29,300 square feet.

The six single-story buildings in the campus were developed in 1986 and 1987 and range in size from 64,000 square feet to 84,050 square feet each.

The purchase marks a return to the market for Romanek, which in late 2011 sold the three main office buildings at Intech Park on the west side of Indianapolis to Boston-based REIT Management & Research. Those buildings have a total of about 430,000 square feet.

"The Hillsdale complex is highly regarded in the marketplace and considered an excellent in-fill location close to major highways and local demand drivers," Romanek principal Peter Holstein said in a prepared statement. He noted the potential for expansion for medical-related tenants.

Duke Realty, meantime, continues to divest suburban office properties as it evolves from an office powerhouse to a more diversified player with heavier focus on industrial and medical office space.

The publicly traded company's biggest such deal has been its $1.08 billion sale of 82 suburban office buildings in Atlanta, Chicago, Columbus, Dallas, Minneapolis, Orlando and Tampa to the private equity giant Blackstone Group LP in late 2011.

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

John Huguenard and Peter Harwood of Jones Lang LaSalle represented Duke Realty in the transaction. Middleton and Romanek did not have a broker.

Duke shares were up 7 cents Wednesday morning, to $14.48 each.

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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