Indianapolis-based Duke Realty Corp. has signed a definitive agreement to sell a 10.1 million square-foot portfolio of suburban office properties located in seven markets throughout the Midwest and South. An affiliate of Blackstone Real Estate Partners VII has agreed to purchase the 82-building portfolio, which includes nearly all of the company's wholly owned suburban office properties in seven cities for a total purchase price of $1.08 billion.
According to the company, the portfolio repositioning is part of Duke Realty's long-term strategy to achieve an investment allocation of 60% industrial, 25% office and 15% medical office space.
‘The portfolio sale is simply a continuation of our strategic plan to reduce our investment in suburban office properties, primarily in Midwest markets,’ says Denny Oklak, chairman and CEO of Duke Realty.
Closing of the transaction is expected to occur on or about Dec. 1, pending regulatory approval.
