Duke Adds 1.5M SF to MOB Portfolio

INDIANAPOLIS-Local REIT Duke Realty Corp. has added some bulk to its asset collection in recent weeks by acquiring two medical office portfolios from different sellers. The separate transactions effectively add 1.5 million square feet to the company's portfolio and raise its medical office investment allocation to 15%, which is ahead of a 2013 year-end goal.

“These two recent transactions are significant for Duke Realty because they have enabled us to successfully meet our goal of having 15% of our investment in medical office assets ahead of our year-end 2013 target date,” says Denny Oklak, Duke Realty chairman and CEO in a press release.  “Through these acquisitions, we also have been able to add high-quality, well-leased properties supported by strong healthcare systems to our portfolio and expand our presence in what we believe are high-growth healthcare markets. In addition, we now have a significant presence in Florida, a targeted Duke Realty healthcare market, and expanded our relationships with five different hospital systems and the Department of Veterans Affairs.”

Duke acquired a seven-building medical office portfolio totaling 334,000 square feet from Georgia-based Harbin Clinic LLC. The properties are 100% leased and are located in and around Rome, GA. These assets support Redmond Regional Medical Center and Floyd Medical Center, the area’s two largest hospitals. The acquired properties include

• Harbin Specialty Center Medical Office Building
• Southeast Cardiovascular Institute
• Harbin Clinic Cancer Center
• Martha Berry Clinic
• Harbin Clinic Dialysis Center
• Cedartown Medical Office Building
• Summerville Dialysis Center

Realty Trust Group served as an advisor to both Duke Realty and Harbin Clinic in the transaction.

Duke Realty also acquired a 15-building medical office portfolio totaling 1.2 million square feet from Seavest Healthcare Properties of White Plains, NY. The properties are located in six states, with the majority in Florida and Texas. The portfolio is 89% leased and consists of:

Florida

• Celebration Medical Plaza (Orlando)
• Kissimmee Medical Plaza
• East Orlando Medical Surgical Plaza
• Sebring Medical Pavilion (Sebring, FL)
• VA Outpatient Clinic (Sunrise, FL)

Texas

• Longview Medical Office Building (Longview)
• Hillcrest Medical Office Buildings I and II (Waco)
• Medical Mall of Abilene (Abilene)

Other

• Mountain View Medical Plaza (Las Cruces, NM)
• Green Clinic ( Ruston, LA)
• Water Tower Medical Commons and Seton Professional Building (Milwaukee)
• Fair Oaks Medical Office Building, (Fairfax, VA)