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INDIANAPOLIS — Indianapolis-based Duke Realty Corp. has acquired two portfolios of medical office assets totaling more than 1.5 million square feet.

With these acquisitions, Duke Realty's investment in medical office assets now accounts for 15 percent of its total portfolio investment, a goal the company established in 2009 as part of its five-year strategy to reposition its portfolio.

“These two recent transactions are significant for Duke Realty because they have enabled us to successfully meet our goal of having 15 percent of our investment in medical office assets ahead of our year-end 2013 target date,” says Denny Oklak, chairman and CEO of Duke Realty Corp.

The company recently acquired a seven-building medical office portfolio totaling 334,000 square feet from Harbin Clinic LLC, the largest independent operator of multi-speciality practice clinics in Georgia.

Duke also bought a 14-building medical office portfolio totaling 1.2 million square feet from Seavest Healthcare Properties. Seavest is a real estate investment management firm focused on medical office buildings and related outpatient facilities.

Oklak says the high-quality properties are located in healthcare markets that Duke projects will experience high growth. “In addition, we now have a significant presence in Florida, a targeted Duke healthcare market, and expanded our relationships with five different hospital systems and the Department of Veteran Affairs.”

The Harbin Clinic properties are fully leased and are located in and around Rome, Ga. The facilities support Redmond Regional Medical Center and Floyd Medical Center, the area's two largest hospitals.

The buildings include Harbin Specialty Center Medical Office Building and Southeast Cardiovascular Institute, both adjacent to the Redmond Regional Medical Center campus. The sale also included Harbin Clinic Cancer Center, located on Floyd Medical Center's campus.

The remaining properties in the portfolio include Martha Berry Clinic, Harbin Clinic Dialysis Center, Cedartown Medical Office Building and Summerville Dialysis Center. Realty Trust Group served as and advisor to both parties in the transaction.

The Seavest properties are located in six states, with the majority in Central and South Florida and Texas. The portfolio is 89 percent leased to leading hospital systems.

Five of the medical office buildings are located in Florida: Celebration Medical Plaza; Kissimmee Medical Plaza; East Orlando Medical Surgical Plaza; Sebring Medical Pavillion; and the VA Outpatient Clinic.

In Texas, Duke added four properties: Longview Medical Office Building; Hillcrest Medical Office Buildings I and II; and Medical Mall of Abilene.

The other buildings in the portfolio include Mountain View Medical Plaza in Las Cruces, N.M.; The Green Clinic in Ruston, La.; Water Tower Medical Commons and Seton Professional Building in Milwaukee; and Fair Oaks Medical Office Building in Fairfax, Va.

Eleven of the 14 acquired medical office properties are located on hospital campuses.

Duke acquired the Harbin Clinic portfolio in September and the Seavest portfolio last month. Following the transaction, Duke owns 6 million square feet of medical office properties in 13 states.

Liz Burlingame

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