(Indianapolis, Ind. – May 7, 2013) Duke Realty Corporation (NYSE: DRE), a leading nationwide REIT (Real Estate Investment Trust) specializing in the ownership, management and development of bulk industrial facilities, medical office properties, and suburban office buildings, today announced that it has sold the Shops at Pembroke Gardens, a 391,120-square-foot lifestyle retail center in Pembroke Pines, Florida. HFF, a commercial real estate and capital markets services provider, advised Duke Realty in the sale of the center which sold to an institutional joint venture for $188 million or $480 per square foot.
“The sale of this retail asset is in alignment with our asset repositioning strategy, which includes divesting our retail holdings and targeting an asset allocation mix of 60 percent bulk industrial, 25 percent suburban office and 15 percent medical office by the end of 2013,” said Denny Oklak, Chair and Chief Executive Officer of Duke Realty. “This disposition is a significant and strategic step in our asset repositioning strategy that has decreased our investment allocation in retail assets and resulted in a significant gain. Proceeds from the sale will be accretively recycled into an eight-building industrial portfolio that we currently have under contract for purchase.”
Located at the heavily traveled I-75 and Pines Boulevard interchange southwest of Fort Lauderdale, the Shops at Pembroke Gardens is 90 percent leased. “The Shops at Pembroke Gardens is a highly leased property and has quickly established a dominant presence in the South Florida retail landscape since it was built in 2008, making it attractive to investors,” said Danny Finkle, Senior Managing Director of HFF. “We are pleased that we were able to work on behalf of Duke Realty to close the deal to the mutual satisfaction of both parties.”
Jeff Behm, Vice President of Dispositions for Duke Realty, worked with the HFF team composed of Finkle, Managing Director Jim Batjer, Director Luis Castillo and Senior Analyst Robert Saracco on the transaction.
Not included in the sale of The Shops at Pembroke Gardens, but contiguous to the retail center, Duke Realty owns approximately seven acres of land slated for retail out lot development and approximately 44 acres of land master planned for approximately 700,000 square feet of Class A office product. “Both of these parcels are strategically located in a densely populated area and can provide retail and office users outstanding accessibility and visibility,” said Ed Mitchell, Senior Vice President of Duke Realty’s South Florida operations. “Our South Florida team is knowledgeable about this market and ready to work with interested parties on land sales and development opportunities.”
Duke Realty currently owns two other high-quality lifestyle retail properties. These include The Shops at West End in St. Louis Park, Minn. and The Shoppes at Montage in Moosic, Pa.
About Duke Realty
Duke Realty owns and operates approximately 143 million rentable square feet of industrial and office, including medical office, space in 18 major U.S. cities. Duke Realty is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty is available at www.dukerealty.com.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE:HF). HFF operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital market services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, load sales and commercial load servicing. www.hfflp.com.