ALEXANDRIA, VA-Less than six weeks after news emerged of the signing of a definitive agreement, Indianapolis-based Duke Realty has closed on a portion of the acquisition of a 32-building office and light industrial portfolio--located in Alexandria and neighboring submarkets--from the Alexandria, VA-headquartered the Mark Winkler Co. Duke forked over $640 million of what will be a total purchase price of $855 million for the entire 2.9 million-sf portfolio, which also includes 166 acres of developable land.
The portfolio involved is presently 95% occupied and consists of 12 office structures totaling 1.3 million sf in the Alexandria/I-395 Corridor, 6 office properties with approximately 800,000 sf in Chantilly, 14 light industrial facilities in the I-28 North Corridor with about 800,000 sf, and a total of 166 acres spread out in the aforementioned areas that can accommodate 3.7 million sf of development.
"This transaction provides the company with a critical mass of existing assets and valuable land positions in one of the most desirable markets in the country," says Duke chairman and CEO Denny Oklak. "We now have a high quality portfolio, a team of proven real estate professionals and the opportunity to provide superior development solutions to the Mid-Atlantic market."
Duke is funding the acquisition of the entire portfolio through a $700-million bridge loan and the assumption of an existing debt totaling $144 million. The remaining $215 million of the deal is on schedule to close later this quarter and during the second quarter of the year.
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