"It's a tough market out there, and there's no doubt that activity has slowed," says Jim Gray, head of the Twin Cities office for Indianapolis-based Duke Realty. "But the Eagan market is holding up, and we're confident we have three or four good prospects."
The project is among $67 million of new developments Duke has underway, totaling 1.7 million sf and expected to provide a stabilized return of 11.4%.
Meanwhile, Duke recently said it sold several buildings in the Minnesota market, including several build-to-suit projects -- a two-story, 153,400-sf office building for United Health Group in Duluth; a 128,000 sf project for Eagle Global Logistics anda 50,000 sf project for freight forwarding company AIT, both part of Duke's Eagan Pointe Business Center development on Dodd Road.
Gray declined to disclose sales prices. The sales were among $281 million in dispositions during the third quarter by Duke, which were sold at a stabilized capitalization rate of 9.5%.
Duke Realty Corp. is the largest mixed office and industrial real estate company in the US, producing more than $800 million in annual revenue from about 5,000 tenants across the Midwest and the Sunbelt.
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