Duke Sells Big Cincy Office Portfolio

CINCINNATI—A real estate fund managed by New York City-based Apollo Global Management recently acquired the fee-simple interest in an 85% leased, roughly one million square foot office portfolio located in the Cincinnati metro area, from Duke Realty Corp., industry sources say.

The buyer paid $103 million for the properties, mostly located in the town of Blue Ash about 20 minutes northeast of downtown Cincinnati along I-71. The purchase price implies a ~9.3% cap rate on in-place NOI with rents about 6% below market and Apollo’s total projected basis after minor capital improvements is projected to be $110 per square foot, or roughly half of today’s replacement cost.