To quote Darcy Lunsford, Real Estate Editor with the South Florida Business Journal, “It’s been leaking like water from a rusty bucket.”
Duke Realty Corp. is negotiating to buy the Premier Commercial Realty’s industrial and office portfolio, according to multiple real estate sources. Pompano Beach-based Premier’s holdings are massive, with about 4.5 million square feet in South Florida and 2 million square fee out-of-state.
The sale is off-market, which means there was no traditional marketing fanfare and no parade of bidders and brokers to spill the beans. But, news of the sale, which could top $500 million based on a market value estimate, is real estate’s worst-kept secret.
The sale, still in the due diligence stage, is expected to close by year-end, according to a source familiar with the pending deal.
“If they had gone out to open market – that is a very desirable portfolio,” the source said. “If they shopped it, they would have gotten a huge price.”
Premier’s properties include:
- Atlantic Business Center on West Atlantic Boulevard in Pompano Beach, which can house as much as 1.2 million square feet of industrial space when fully built out.
- The 380,400-square-foot Copans Business Park on West Copans Road.
- The 987,000-square-foot Park Central Business Park in Pompano Beach.
- The 336,000-square-foot Premier Gateway Center @ Quantum in Boynton Beach.
The fact that Duke is seeking Premier’s assets – or that the privately owned Premier would opt to negotiate with the public Duke (NYSE: DRE) without going out to the open market for competitive bids – is hardly a shocking plot twist.
In June, Premier sold its 27-acre Premier Turnpike Park to Duke for about $20 million.
Read more: Duke poised to acquire Premier assets | South Florida Business Journal
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