WEST JEFFERSON, OHIO, AND PLAINFIELD, IND. — CB Richard Ellis Realty Trust and Duke Realty Corp. have purchased two build-to-suit bulk warehouse/distribution facilities for $99.7 million. The two properties were the final sites identified in the initial portfolio under the companies’ joint venture agreement.
“The venture was created in May 2007 with the goal of purchasing $800 million of industrial property in 3 years, and these additional assets support that strategy,” explains Robert Chapman, chief operating officer for Duke. “They are the [targeted] product types and have highly-valued tenants, [and they] are newer properties that were completed within the past year.”
The facilities, which are fully occupied on long-term leases, are Class A, single-tenant structures. In the Columbus suburb of West Jefferson, the joint venture has acquired an approximately 1.15 million-square-foot facility located just off of Interstate 70. The building is occupied by Kellogg Sales Co. In Plainfield, the joint venture has acquired an approximately 1.2 million-square-foot building located at 1750 AllPoints Parkway. Prime Distribution Services occupies the facility, which is situated 1 mile from the Indianapolis International Airport.
“This venture will continue to allow Duke to retain an interest in key bulk industrial build-to-suit projects, recycle a significant amount of capital, and strengthen our private capital track record with the ultimate goal of launching additional funds,” Chapman say. “Overall, with this joint venture, Duke will also receive asset management, property management, construction management, development and leasing fees in connection with services provided to the venture.”
To date, the joint venture between CB Richard Ellis Realty Trust and Duke Realty Corp. has acquired seven properties in six states totaling $282.3 million.