Indianapolis-based Duke Realty Corp. said Monday it has entered into agreements totaling $967 million to sell 20 suburban office buildings, located mostly in the Midwest, and to acquire 51 industrial and five office buildings in south Florida.
Terms of the transactions call for Duke Realty to sell nearly 3.1 million square feet of suburban office space for $516.7 million to an existing joint venture with CB Richard Ellis Realty Trust, and to acquire Premier Commercial Realty’s entire south Florida property portfolio for $450 million.
Duke Realty has a 20-percent ownership stake in the joint venture with CB Richard Ellis. That deal is expected to close by Dec. 31.
About $414 million in cash proceeds from that transaction will be used to fund property acquisitions and for general corporate purposes, including the repayment of debt.
The properties it plans to purchase from Premier consist of 56 buildings—mostly industrial—totaling more than 4.9 million square feet.
The properties, in Broward and Palm Beach counties, are 85.7-percent leased. The purchase price includes the assumption of $292 million of debt.
The acquisition deal is expected to close by early next year.
Both deals advance Duke Realty’s strategy to reposition its portfolio from primarily suburban to industrial properties, company CEO Dennis D. Oklak said in a prepared statement.
Upon closing, Duke’s asset base will be 42 percent industrial, 49 percent office, and 9 percent medical office and “other.”