Duke Realty Corp. (DRE), a real estate investment trust (REIT), has recently completed the acquisition of Royal Palm at Southpointe, an office park spanning 465,492 square feet in South Florida, for $100.4 million or approximately $216 per square foot. The property comprised of two buildings built in 2001 and 2007.
 
The acquisition was in line with the long-term strategy of the company to own high quality Class A assets in South Florida. The property is currently 90% leased and has Ameriprise Financial Inc. (AMP) and Equitrac Corp. as its tenants.
 
Duke Realty is one of the largest commercial real estate companies in the U.S. For over 35 years, the company has leveraged its local presence and its integrated platform to drive returns, establishing itself as a premier publicly traded real estate developer in the country.
 
Duke Realty is currently repositioning its portfolio and has exited certain markets in an attempt to concentrate in areas where it already has a strong presence. The company has temporarily closed its operations in some of its newest markets including Austin, San Antonio, Seattle and Newport Beach. The portfolio reshuffle is likely to improve Duke Reality’s internal growth metrics and position it to emerge stronger once the real estate markets fully recover.
 
Currently, we maintain our Neutral rating on Duke Realty with a Zacks #3 Rank, which translates into a short-term ‘Hold’ recommendation and indicates that the stock is expected to perform in line with the overall U.S. equity market for the next 1–3 months.
 
AMERIPRISE FINL (AMP): Free Stock Analysis Report
 
DUKE REALTY CP (DRE): Free Stock Analysis Report
 
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