Duke Realty Medical Office
Savills Studley was retained by Duke Realty (Duke) to advise the firm in regard to the disposition of 17 medical office buildings totaling 938,000 square feet. The buildings comprised a national portfolio spread across Indiana, Ohio, Michigan and Texas, creating a unique investment opportunity concentrated in the Midwest.
The team quickly began marketing efforts, highlighting the portfolio’s numerous benefits, such as a 97% overall occupancy, 65% new construction built within the previous eight years and approximately half of the portfolio’s space located off campus. Based on Savills Studley’s extensive experience and industry contacts, the team was able to employ a targeted marketing approach to the most active portfolio buyers in the MOB space.
Public and nonpublic REITs, pension fund advisors and private equity funds were contacted and briefed on the opportunity. Savills Studley received eight term sheets based on investor meetings, six of which bid on the complete portfolio. Due to the quality and extent of interest from targeted buyers, a multi-round bidding process pushed prices higher. Savills Studley ultimately secured a nonpublic REIT investor at approximately $259 million ($276 per square foot).