INDIANAPOLIS-Duke Realty Corp., based here, has agreed to sell its 82-building suburban office portfolio to New York City-based Blackstone Real Estate Partners for $1 billion. The portfolio of about 10 million square feet is located throughout the Midwest and South.
Duke officials said in a statement that the sale is part of a company refocusing efforts. The company’s long-term strategy is to own 60% industrial, 25% office and 15% medical office, the company said.
Denny Oklak, Duke chairman and CEO, said in the statement that getting out of the Midwest suburban office market is a prime priority. “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.” His firm currently owns and operates more than 141 million square feet of industrial and office in 18 major US cities.
The deal for the properties, located in Atlanta, Chicago, Columbus, Dallas, Minneapolis, Orlando and Tampa, is expected to close by Dec. 1. Blackstone will also take over management of the properties.
A request for information from both Duke and Blackstone was not returned in time for this story.
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