Duke Announces $67.2 Million of New Investments, Third-Party Build-to-Suit, Land Purchase and Asset Sale.INDIANAPOLIS--(BUSINESS WIRE)--July 16, 1997--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 (DRE/NYSE) announced today that it has commenced five new developments and made two acquisitions encompassing more than 1.6 million square feet in the aggregate. 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 11.5 percent on its $67.2 million combined investment in these new properties. Duke also announced today that it has sold two office buildings in suburban Detroit, and has purchased 82 acres of land and commenced a third-party build-to-suit development in St. Louis, Missouri. With today's announcements, Duke has announced to date in 1997, $302.2 million of new investments on which it expects to achieve a stabilized return of 11.2 percent. Two of Duke's new developments and the third-party build-to-suit announced today are located in its Earth City Business Park in St. Louis, Missouri. One of these projects is a 97,000 square foot suburban office building that is 100 percent pre-leased for 10 years to MCI Communications This article is about MCI before it merged with WorldCom. For other uses, see MCI. MCI Communications was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and Corporation. A second project is a 214,000 square foot bulk warehouse that is under construction without pre-leasing due to strong demand and low vacancy rates in the St. Louis industrial market. Duke's third-party build-to-suit at Earth City is a 179,000 square foot industrial building that will serve as the national distribution center for Motors and Armatures, Inc., which will own its new building. The Company also announced today the development of a 94,000 square foot suburban office building located at the Company's Corporate Park at Tuttle Crossing in Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. . This project is 100 percent pre-leased for 15 years to Sterling Commerce, an existing Tuttle Crossing tenant that is expanding into additional space. The Company's fourth new development announced today is a 77,000 square foot suburban office building located at Duke's Park 100 Business Park in Indianapolis, Indiana “Indianapolis” redirects here. For other uses, see Indianapolis (disambiguation). Indianapolis (IPA: [ˌɪndiəˈnæpəlɪs]) is the capital city of the U.S. . This project is approximately two-thirds pre-leased and is subject to pending real estate tax abatement A reduction, a decrease, or a diminution. The suspension or cessation, in whole or in part, of a continuing charge, such as rent. With respect to estates, an abatement is a proportional diminution or reduction of the monetary legacies, a disposition of property by will, when approvals. Duke's fifth new development is a 261,000 square foot distribution center on Mosteller Road 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. . This building is located on excess land that was acquired last year when the Company purchased a vacant 358,000 square foot distribution building near its World Park development on Cincinnati's north side. After leasing 100 percent of its existing Mosteller Road building, Duke is currently negotiating leases for approximately half of this new project announced today. The Company also announced today that is has acquired a 75,000 square foot suburban office building that is 95 percent leased and located at Keystone at the Crossing Keystone at the Crossing is a business and shopping district located in northern Indianapolis at the intersection of East 86th Street and North Keystone Avenue, which is also known as State Road 431 south of I-465. The Fashion Mall is considered the heart of the district. , the premier suburban office development in Indianapolis, Indiana. This facility was originally developed by Duke in 1985 and has been leased and managed by the Company since then. The Company's second acquisition announced today is a 789,000 square foot distribution center located at Rickenbacker Industrial Park in Columbus, Ohio. The building is the corporate headquarters and primary distribution center for Sun Television and Appliances Sun Television and Appliances was a speciality retailer of consumer electronics and home appliances. The company primarily operated stores in rural areas, where there was no other competition,[1] , Inc. (Sun) and is the subject of a sale-leaseback transaction whereby Sun has leased 81 percent of the facility for 10 years plus additional options. This transaction also included approximately 12 acres of undeveloped land on which Duke can construct approximately 230,000 square feet of additional distribution space. The Company's asset sale announced today includes two suburban office buildings totaling 245,000 square feet in the Detroit suburb of Livonia, Michigan Livonia is a city located in the northwest part of Wayne County in the U.S. state of Michigan. As of the 2000 census, the city had a total population of 100,545, making it the eighth largest in the state. . This transaction, which produced net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $21.7 million, completed Duke's planned exit of the Detroit market. Commenting on this transaction, Thomas L. Hefner, President and Chief Executive Officer of Duke, said, "After thorough study we do not believe the Detroit market has the long term growth potential of our other Midwestern markets and therefore we concluded that our capital can be more profitably employed elsewhere." Duke's final transaction announced today is a $7.4 million land purchase in the West Port industrial 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. of St. Louis, Missouri. Development plans for this 82 acre site call for a combination of outlot sales and approximately 600,000 square feet of new industrial development. Currently, the West Port industrial market contains approximately 14 million square feet and is approximately 98% occupied. Duke Realty Investments is a fully integrated real estate company that owns interests in a diversified diversified (di·verˑ·s portfolio of 290 industrial, office and retail properties encompassing approximately 35.7 million square feet including today's announcements. These properties are primarily located in eight Midwestern states. Duke Realty also owns approximately 1,300 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. CONTACT: Duke Realty Investments Investor Inquires: Thomas K. Peck peck: see English units of measurement. , 317/574-3512 Media Inquires: Donna H. Coppinger, 317/574-3518 |
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