Duke tried to sell off all of its holdings in the Clevelandarea, and managed to divest its entire 1.8-million-sf industrialportfolio in July 2006, and also was able to sell eight officeproperties to a joint venture of King Group and the GothamOrganization for about $171 million, an average of $191 per sf, inMarch 2007. However, a Duke spokesman said a deal for the 14 otherproperties fell through. "We thought we had a buyer, but then themarkets turned south on us. We came very close, but the buyer wasnot able to obtain the financing they could live with," thespokesman tells GlobeSt.com. He says he cannot reveal the name ofthe buyer.


The 14 properties are along the Rockside Road corridor inIndependence and near Great Northern Mall in North Olmsted. Theproperties, which include Park Center Plaza III, Corporate PlazaII, Freedom Square II and Great Northern Corporate Center III, areabout 85% leased, the spokesman says.


Duke officials have told GlobeSt.com in past stories that itwanted to get out of the Cleveland market to concentrate onfaster-growing regions. Since it has transitioned many of itsbrokers out, the company no longer has a good management team torun the properties, necessitating the CBRE hire, the spokesmansays. "They really know the market well," the spokesman says. About10 remaining Duke sales personnel have been hired by the CBRE team,he says.


Any buyer interested, either in the portfolio or even one or twoof the propreties, should still contact CBRE and Duke, thespokesman says. "We're a developer, even if we finish a brand newbuilding tomorrow, it's always on the market," he says. "We thinkin all likelihood we'll be holding onto this portfolio for at leasttwo more years."

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