Duke Announces $277 Million of New Acquisitions and Developments.INDIANAPOLIS--(BUSINESS WIRE)--Aug. 28, 1997-- Land Purchases and Expanded Line of Credit Also Announced Duke Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Investments, Inc. (DRE DRE Digital rectal examination. Mentioned in: Rectal Examination :NYSE NYSE See: New York Stock Exchange ) announced today that it has purchased or has committed to purchase nearly 1.9 million square feet of primarily suburban office properties in four separate transactions. Additionally, Duke announced today that it has commenced three new developments in Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation). Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. totaling 340,000 square feet. The Company expects to achieve a stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. return of 10.1 percent on its combined investment of $277 million in these new properties. The calculation of this return does not include the positive effect of straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time and includes a five percent vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. factor (even though the acquisition properties are 98.7 percent leased) as well as a replacement reserve to cover future capital expenditures that are not currently necessary. Duke also announced today that it plans to invest $28.5 million for undeveloped land contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. to several of the buildings it owns or has committed to purchase in St. Louis. The St. Louis Transaction The Company's most significant transaction announced today is its commitment to purchase Baur Properties which includes interests in eight suburban office buildings totaling 904,000 square feet and three industrial buildings totaling 78,000 square feet in St. Louis, Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. . Seven of the office buildings are located along the Highway
40 corridor of West St. Louis county St. Louis County is the name of multiple counties in the United States:
In connection with the St. Louis transaction, Duke will also assume the real estate operations of Baur Properties, one of the most established and well regarded commercial real estate firms in the city. Accordingly, Edward T. Baur, the Chairman of Baur Properties, will become Vice President and General Manager of Duke's St. Louis operations. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs L. Hefner, President and Chief Executive Officer of Duke, "We are delighted to be able to team with the Baur organization in St. Louis. The people at Baur are not only talented real estate professionals, but first class individuals as well. In addition to acquiring both the undeveloped land and buildings in Maryville Centre, one of the premier office parks in the Midwest, we think that this transaction will significantly accelerate our momentum in St. Louis. Upon completion of the transaction, the combined Duke/Baur team will enjoy dominance in the St. Louis real estate market similar to our Indianapolis, Cincinnati and Columbus operations." In a transaction unrelated to its pending acquisition of Baur Properties, the Company also announced today that it purchased the remaining 83 acres of undeveloped land at Earth City Business Park in St. Louis that it currently does not own. Duke's plan for this site includes the future development of approximately 1.1 million square feet of primarily industrial properties. Coupled with its recently announced purchase of 82 acres in the Westport sub-market Duke now owns or controls substantially all of the large tracts of undeveloped land in the northwest St. Louis County industrial market. The Chicago Transaction The Company also announced today the acquisition of Executive Towers West, a three-building suburban office complex in Chicago totaling approximately 650,000 square feet. The complex is located at the intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. of the East-West (I-88) and North-South (I-355) toll ways, just one interchange An interchange is a location where two things meet, usually perform some kind of exchange, and possibly go on their ways again. It is most commonly used in four contexts:
n. 1. A fine, smooth, tightly twisted thread spun from long-stapled cotton. 2. Fabric knitted of this thread, used especially for hosiery and underwear. property in Chicago's western suburbs Western Suburbs (Wests) is the premier soccer club in Wellington, New Zealand and current holders of the Chatham Cup. The 2005 season was particularly successful for the club with the First Team claiming the Central League championship and the Reserve side gaining promotion to the . Executive Towers West is 97 percent leased. According to Mr. Hefner, "After entering the Chicago market three months ago, we are encouraged by the opportunities available to us. The Executive Towers portfolio is an excellent complement to our existing niche in the western suburbs. Going forward, we will continue to pursue both office and industrial opportunities in the Chicago marketplace." The Cincinnati Transactions Duke's acquisitions announced today include two separate transactions in Cincinnati, Ohio. One of these transactions is One Ashview, a 121,000 square foot suburban office building located in the robust Blue Ash sub-market directly north of Duke's Cincinnati headquarters. This property is 99 percent leased. Duke's second Cincinnati acquisition announced today includes two industrial buildings located in the northern Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. sub-market. These buildings, known as 7910 and 7920 Kentucky Drive, are each 100 percent leased and total approximately 132,000 square feet. The Company's three Cincinnati developments announced today include two retail centers. One is a 149,000 square foot project in the Western Hills sub-market that includes the redevelopment of an existing 93,000 square foot structure and new construction of 56,000 square feet. The second project is a 73,000 square foot retail center to be developed in the Tri-County submarket sub·mar·ket n. A geographic, economic, or specialized subdivision of a market. adj. Being below what is usual in a particular market: submarket wages; submarket interest rates. . These new developments, including leases currently being finalized See finalization. , are 73 percent and 64 percent pre-leased, respectively. Duke's third new development announced today is 4550 Governor's Pointe pointe n. In ballet, dancing that is performed on the tips of the toes. [From French pointe (des pieds), point (of the feet), tiptoe; see point.] , a 118,000 square foot suburban office building located at the Company's Governor's Pointe business park along I-71 in northern Cincinnati. With strong suburban office demand in Cincinnati and a sub-market vacancy rate of less than six percent, this project has commenced without pre-leasing. Including this project, Duke now owns more than one million square feet of suburban office properties in both its Governor's Pointe and nearby Governor's Hill business parks combined. Line of Credit Expansion The Company also announced today that it has extended the term by three years and increased the size of its unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. line of credit to $200 million from $150 million. Additionally, the interest rate on this facility has decreased 20 basis points to LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). + 0.80 percent. This expanded line of credit also includes a competitive bid provision whereby participants in the facility can bid to price certain loan tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". at a rate below the stated interest rate of LIBOR + 0.80 percent. When used in this press release, the word "believes," "expects," "estimates" and similar expressions are intended to identify forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially. In particular, among the factors that could cause actual results to differ materially are continued qualification as a real estate investment trust, general business and economic conditions, competition, increases in real estate construction costs, interest rates, accessibility of debt and equity capital markets and other risks inherent in the real estate business including tenant defaults, potential liability relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc environmental matters and liquidity of real estate investments. Readers are advised to refer to the Company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. Report as filed with the Securities and Exchange Commission on March 29, 1996 for additional information concerning these risks. Duke Realty Investments is a fully integrated real estate company that owns interests in a diversified diversified (di·verˑ·s portfolio of 310 industrial, office and retail properties encompassing approximately 37.9 million square feet including today's announcements. These properties are primarily located in seven Midwestern states. Duke Realty also owns approximately 1,500 acres of land for future development. The Company is a self-administered real estate investment trust which provides leasing, management, development, construction and other tenant-related services for its own properties and for 8.1 million square feet of properties owned by third parties. -0-
Supplemental Tables
I. Announced Acquisitions
Rentable Year Percent
Property Type Square Feet Built Leased
_____________ ________ ___________ ________ ________
St. Louis
_________
500 Maryville Suburban Office 165,544 1984 100.00%
530 Maryville Suburban Office 107,957 1990 100.00%
550 Maryville Suburban Office 97,109 1988 95.68%
635 Maryville Suburban Office 148,307 1987 99.86%
655 Maryville Suburban Office 90,499 1994 100.00%
625 Maryville (1) Suburban Office 101,576 1994 100.00%
540 Maryville Suburban Office 107,973 1990 100.00%
Twin Oaks Suburban Office 85,066 1980 100.00%
Southport I Service Center 20,810 1977 100.00%
Southport II Service Center 22,400 1978 100.00%
Southport
Commerce Center Service Center 34,873 1978 100.00%
__________ _________
St. Louis Total 982,114 99.55%
__________ _________
__________ _________
Chicago
_______
Executive Towers I Suburban Office 203,302 1983 94.00%
Executive Towers II Suburban Office 224,140 1984 96.98%
Executive Towers III Suburban Office 222,400 1987 100.00%
__________ _________
Chicago Total 649,842 97.08%
__________ _________
__________ _________
Cincinnati
__________
One Ashview Suburban Office 120,853 1989 99.40%
7910 Kentucky Drive Bulk 38,329 1980 100.00%
7920 Kentucky Drive Bulk 93,945 1974 100.00%
__________ _________
Cincinnati Total 253,127 99.71%
__________ _________
__________ _________
Grand Total Acquisitions 1,885,083 98.72%
__________ _________
__________ _________
II. Proforma Geographic Summary at June 30, 1997
Net Effective Rent (in thousand's)
__________________________________________ Percent of
Primary Market Industrial Office Retail Total Overall
______________ __________ ______ ______ _____ _________
Indianapolis 46,231 13,594 1,810 $ 61,635 29.43%
Cincinnati 17,117 33,063 6,904 57,084 27.26%
Columbus 4,545 18,875 2,339 25,759 12.30%
St. Louis 3,893 21,473 - 25,366 12.11%
Chicago - 16,088 - 16,088 7.68%
Cleveland 974 12,695 - 13,669 6.53%
Nashville 3,896 - - 3,896 1.86%
Other 1,517 - 4,418 5,935 2.83%
Total $ 78,173 $ 115,788 $ 15,471 $ 209,432 100.00%
________ _________ ________ _________ _______
________ _________ ________ _________ _______
Square Feet (in thousand's)
Percent of
Primary Market Industrial Office Retail Total Overall
______________ __________ ______ ______ _____ __________
Indianapolis 13,620 1,417 194 15,231 45.75%
Cincinnati 4,135 3,082 799 8,016 24.08%
Columbus 1,749 1,481 219 3,449 10.36%
St. Louis 1,002 1,585 - 2,587 7.77%
Cleveland 332 1,059 - 1,391 4.18%
Chicago - 995 - 995 2.99%
Nashville 562 - - 562 1.69%
Other 562 - 498 1,060 3.18%
________ _________ ________ _________ _______
Total 21,962 9,619 1,710 33,291 100.00%
________ _________ ________ _________ _______
________ _________ ________ _________ _______
(1) The Company currently intends to acquire a 49% interest in this
property.
CONTACT: Duke Realty Investments Inc. For Investor Inquiries, contact: Thomas K. Peck peck: see English units of measurement. , 317/574-3512 or For Media Inquiries, contact: Donna H. Coppinger, 317/574-3518 |
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