Real Estate News

Duke Realty completes sale of Triangle office portfolio

Duke Realty has officially sold its Triangle office properties and remaining available land here to a joint venture led by Starwood Capital Group for nearly a half-billion dollars.

Property records filed this week in Wake County show 26 different deeds changing hands for a total of $498,405,000. That price is in line with the $160 per-square-foot price that was named when the $1.12 billion deal was first announced in January.

Duke sold a total of 62 buildings in four markets to Starwood, Vanderbilt Partners and Charlotte-based Trinity Capital Advisors. The other properties were in Nashville, Tenn., St. Louis, Mo. and South Florida.

Trinity is taking over management and leasing of the Triangle portfolio, which includes 24 buildings and 50 acres of land. Of the 6.9 million square feet of space included in the deal, just more than 3 million square feet is here.

The transaction is among the largest bulk sales of office properties in the Triangle, and affects a total of 90 tenants leasing space in the buildings. Duke’s entire office portfolio is 90 percent leased.

The price the Starwood group paid reflects the quality of many of Duke’s assets and tenants, as well as the Triangle’s emergence as one of the more attractive office markets for global investors.

Duke had been the second-largest office landlord in the Triangle before the sale. Among the assets the company sold was its 100 Regency Forest Drive building in Cary and the Perimeter Park office park in Morrisville, which is home to Lenovo, SciQuest and a number of other prominent Triangle companies.

The office building Duke now has under construction at Perimeter Park, which is to be the headquarters for ChannelAdvisor, is expected to be sold to Starwood's group later this year after it is completed.

Duke’s willingness to unload so many well-performing office properties in the Triangle shows the Indianapolis-based company’s commitment to the strategy it began implementing several years ago. Duke had been gradually paring its office portfolio as part of its national strategy of increasing its industrial and medical office portfolio.

Duke is retaining its industrial and medical office properties in the Triangle. The company now owns more than 2 million square feet of warehouse space in the region.

Bracken: 919-829-4548 or;

Twitter: @brackendavid