Duke Realty Corp. struck a deal to buy nearly $700 million of logistics centers from Bridge Development Partners LLC, The Wall Street Journal reported.
The two-phase deal includes a portfolio of 10 existing buildings spanning 3.4 million square feet in Southern California, northern New Jersey and South Florida, and a pair of to-be-developed properties aggregating 853,000 square feet.
The existing buildings are new and are roughly 50% occupied, but Bridge Development CEO Steve Poulos told the publication that he is optimistic the space will be filled easily, given strong demand primarily from online retailers. Meanwhile, construction on the two properties is slated to start later in 2017.
Duke Realty has been transitioning to logistics properties from a portfolio focused on suburban office and medical office buildings since roughly six years ago.