Duke Realty Corp., a REIT that has a history of investing in offices and medical properties, is buying logistics facilities (warehouses) from Bridge Development Partners. The purchase solidifies a move to logistics properties that Duke began years ago. The strategy stems from the explosion of the online retail business. Peter Grant reports:
Indianapolis-based Duke is buying the properties from Chicago-based Bridge Development Partners LLC in two stages. The first includes a 10-building portfolio with 3.4 million square feet in Southern California, northern New Jersey and South Florida.
Duke also has agreed to buy two other properties totaling 853,000 square feet that haven’t been built yet. Construction is expected to begin later this year.
The existing 10-building portfolio is about half occupied because the buildings are new and there hasn’t been time to lease them up, according to Steve Poulos, chief executive of Bridge. The space should fill easily because demand is strong in those markets, largely from online retailers that want to be close to population centers so they can deliver goods quickly, he said.
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