Duke Plans 400,600 SF of New Distribution Space

Duke paid United Properties Southwest LLC $2.6 million, or about $89,655 per acre ($2.05 per sf), for the 29 acres on Florida Mining Boulevard, north of Waters Boulevard and one-quarter mile east of Veterans Expressway in West Tampa.

Doug Irmscher, senior vice president of Duke Realty's Florida operations, tells GlobeSt.com Eagle Creek will probably have a hard construction cost of about $68 per sf. The Victory Packaging distribution center's cost will probably come in at about $53 per sf.

Duke's senior leasing representative Tim Hain negotiated the 29-acre land deal in Tampa for his firm. Seller United Properties Southwest LLC, which recently acquired the site from the Hillsborough County School Board, represented itself.

In the Orlando transaction, Duke's Kyle Armentrout represented his firm in the Victory Packaging deal. Susan Ruby of Cushman & Wakefield of Florida Inc. negotiated for Victory Packaging.

The Victory Packaging center will be built on about nine acres and is expected to be completed by September, Irmscher says. Crossroads Business Park is located along the south side of the Bee Line Expressway and across from the 1.6-million-sf Florida Mall. Duke is also developing a 200,200-sf facility for Victory Packaging in suburban Chicago.

Duke is expanding its operations in Florida with more than 165 acres of new land acquisitions and options in the Tampa, Orlando and South Florida markets in 2005, Irmscher says. New retail, office and industrial development planned or under way in Florida exceeds 2.3 million sf. Duke's total Florida portfolio of office and industrial properties tops five million sf.

"Our new Eagle Creek Business Center in the West Tampa submarket is an excellent complement to our existing Fairfield Distribution Center development at Interstate 4 and US 301," Irmscher says. "This acquisition and planned distribution park is part of Duke Realty's plan to strengthen its distribution portfolio in Central Florida."

Eagle Creek and Crossroads Business Park represent one million sf of new class A distribution product being developed by Duke Realty in Central Florida, according to Irmscher.

In March, Duke acquired 40 acres in Pembroke Pines for $8 million, or $202,000 per acre ($4.64 per sf), to develop up to 400,000 sf of retail space. The REIT also has an option to buy 55 adjacent acres for a future class A office park, as GlobeSt.com previously reported.