Duke Realty Announces Development Of 460,000 Square Foot Outpatient Cancer Treatment Center For Baylor University

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(News Source: Duke Realty Corporation)

(INDIANAPOLIS, IN) -- Duke Realty Corporation (NYSE: DRE), an owner, manager and developer of industrial, office and healthcare properties throughout the United States, announced today that it has commenced the development of the new Baylor Cancer Center, a 460,000-square foot, $154 million outpatient cancer treatment center at Baylor University Medical Center at Dallas.  Baylor University Medical Center at Dallas is a nationally recognized not-for-profit hospital that cares for more than 300,000 people each year and has over 1,000 licensed beds.
 
The project will be owned by a newly created joint venture between Duke and Northwestern Mutual with the majority of the venture owned by Northwestern Mutual. Duke will receive development and leasing fees during development and construction. BremnerDuke Healthcare Real Estate, a division of Duke Realty Corporation, will manage the asset following completion.
 
When completed, the Baylor Cancer Center is expected to receive LEED® silver certification and will be among the premier cancer centers in the nation. The 10-story facility will include cancer treatment services, clinical and physician space, oncology research, conference facilities and underground parking for 250 cars. The project is 93 percent pre-leased to Baylor Health Care System, and US Oncology, Inc., one of the nation's leading oncology services companies.
 
"Duke is extremely proud of this transaction and our ability to perform under the current market conditions. The relationship with Baylor continues to grow, as this is the fourth project we have started for Baylor in the past 18 months.  We are honored by the trust and confidence they have placed in us," said Dennis D. Oklak, chairman and chief executive officer of Duke.
 
"The Baylor Cancer Center illustrates our commitment to healthcare development and ownership as crucial elements of the company's long-term growth strategy." Oklak continued, "Northwestern Mutual's decision to form a joint venture with us indicates the long-term potential of the project and the healthcare expertise of BremnerDuke."
 
BremnerDuke Healthcare Real Estate began its relationship with Baylor in 2007.  In addition to the Baylor Cancer Center, BremnerDuke is developing a 141,000-square foot seven-story medical office building at Baylor Regional Medical Center at Plano (Texas), a three-story, 81,400-square foot professional office building for Baylor Heath Care System on the campus of Baylor University Medical Center at Dallas, and an orthopedic hospital in Arlington, Texas for a joint venture of which Baylor Healthcare System is a major owner.
 
Savills LLC, the real estate banking firm headquartered in New York City with affiliated offices throughout Europe and Asia, represented Duke in the formation of the Baylor Cancer Center joint venture.

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