Duke Realty Corporation (NYSE: DRE), a leading nationwide REIT (Real Estate Investment Trust) specializing in the ownership, management and development of bulk industrial facilities, medical office properties, and suburban office buildings announced today that it has acquired two portfolios of premium medical office assets totaling 1,536,000 square feet. With these acquisitions, Duke Realty's investment in medical office assets is now 15 percent, a goal the company established in 2009 as part of its five-year strategy to reposition its portfolio.
"These two recent transactions are significant for Duke Realty because they have enabled us to successfully meet our goal of having 15 percent of our investment in medical office assets ahead of our year-end 2013 target date," said Denny Oklak, Chair and Chief Executive Officer of Duke Realty Corporation. "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 Realty's most recent acquisitions include a seven-building medical office portfolio totaling 334,000 square feet from Harbin Clinic LLC, the largest independent operator of multi-specialty practice clinics in Georgia, and a 14-building medical office portfolio totaling 1,202,000 square feet from Seavest Healthcare Properties, a real estate investment management firm focused on medical office buildings and related outpatient facilities.
The Harbin Clinic properties, which are 100 percent leased, are all located in and around Rome, Ga., a rapidly growing region in northwest Georgia, and 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 and Southeast Cardiovascular Institute, both of which are located adjacent to Redmond Regional Medical Center campus, and Harbin Clinic Cancer Center, which is located on Floyd Medical Center's campus. The other properties in the portfolio are the Martha Berry Clinic, Harbin Clinic Dialysis Center, Cedartown Medical Office Building and Summerville Dialysis Center. Realty Trust Group served as an advisor to both Duke Realty and Harbin Clinic in the transaction.
The properties acquired from Seavest are located in six states, with the majority in Central and South Florida and Texas, and are more than 89 percent leased to leading hospital systems or their affiliates. Five of the medical office buildings are located in Florida: Celebration Medical Plaza, Kissimmee Medical Plaza and East Orlando Medical Surgical Plaza, all in the Orlando area; Sebring Medical Pavilion, Sebring; and the VA Outpatient Clinic in Sunrise. In Texas, Duke Realty has added four properties: Longview Medical Office Building, Longview; Hillcrest Medical Office Buildings I and II, Waco; and Medical Mall of Abilene. The other buildings in the portfolio include Mountain View Medical Plaza in Las Cruces, N.M.; The Green Clinic, Ruston, La.; Water Tower Medical Commons and Seton Professional Building in or near Milwaukee; and Fair Oaks Medical Office Building, Fairfax, Va.
Eleven of the 14 acquired medical office properties are located on hospital campuses. Four are affiliated with Adventist Health, while two buildings each are affiliated with Ascension, Scott & White and Community Health. One building is affiliated with INOVA. Of the three off-campus properties, one is a Department of Veteran Affairs facility, while the other two properties are located adjacent to Community Health Hospitals.
The acquisition of the Harbin Clinic portfolio was completed in September 2012 and the Seavest portfolio in October 2012. With the completion of these transactions, Duke Realty has medical office properties in 13 states, with a portfolio exceeding 6 million square feet.
About Duke Realty
Duke Realty owns and operates approximately 142 million rentable square feet of industrial and office assets, including medical office, in 18 major U.S. cities. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty is available at http://www.dukerealty.com.
With more than 20 years in the industry, Duke Realty's healthcare team offers proven experience in providing hospitals and physician groups comprehensive planning, development, ownership and facility management services. Duke Realty's medical office portfolio projects range from small medical office buildings to large healthcare centers with diagnostics, oncology and surgery services.
Editor's Note: Please contact Duke Realty's Communications department at duke.communications2(at)dukerealty(dot)com if images of the properties mentioned in this release are needed.
Duke Realty Corporation
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