Duke Healthcare Enters Area With 364,000-SF Buy

ATLANTA-Indianapolis-based Duke Realty Corp.’s healthcare business unit BremnerDuke Healthcare Real Estate has entered the market with the acquisition of the two-building, 363,778-sf Center Pointe office complex. The properties, called Center Pointe I and II, were acquired from Perimeter 400 LLC along with four acres of surrounding property.

Built in the mid-1980s, Center Pointe is located off Interstate 285 near Peachtree Dunwoody and Johnson Ferry roads in an area known as Pill Hill–where hospitals, such as Saint Joseph’s Hospital, and medical office facilities are located. The acquisition price was not disclosed, but real estate sources estimate the sale price to be northwards of $50 million.

“This property is very near to medical facilities in the area and is adjacent to Saint Joseph’s Hospital,” BremnerDuke Healthcare executive vice president Deeni Taylor tells GlobeSt.com. “It has the potential to be converted to medical office space.”

Over the next three to four years, BremnerDuke plans to transition half of the space at Center Pointe, which is currently 80% occupied, into medical office space for medical specialties in the area, including oncology, orthopedics and ophthalmology as existing non-healthcare tenants’ leases expire. Over the next eight to 10 years, the property will be 100% dedicated to medical office space. To complete the conversion, improvements must be made to the HVAC, electrical, water, sewer and elevator systems. “We have to bring the building up to medical standards,” Taylor says.