Stating that the goal is to identify properties that provide strategic land positions with opportunity for long-term economic growth, Indianapolis- based Duke Realty Corp. and Bedford, Ohio-based Hemisphere Development LLC have signed a co-development agreement.

The agreement calls for the two organizations to jointly pursue brownfield redevelopment projects—particularly those in close proximity to ports—that can be parlayed into economically viable commercial real estate properties.

Duke Realty Corp. is the largest publicly-traded, vertically-integrated office/ industrial real estate company in the United States. Hemisphere Development is widely recognized as a creative and experienced brownfield redevelopment firm.

As part of the agreement, Duke will leverage its expertise in site selection, financing, development and construction, while Hemisphere will deliver its specialized expertise in all aspects of brownfield redevelopment. Duke and Hemisphere will collaborate on site identification, due diligence and investigation of brownfield properties that can be vertically developed in high-growth markets.

“The Duke-Hemisphere relationship will bring unparalleled depth, resources and expertise in the commercial development of brownfield properties throughout the United States. Hemisphere has proven that brownfield sites can support a strong return on investment,” said Bill DeBoer, executive vice president of Duke’s Redevelopment and Logistics Division. “Together we will identify properties that provide strategic land positions and have a solid opportunity for long-term economic growth.”

Added Todd S. Davis, chief executive officer for Hemisphere Development: “Successfully redeveloping a complex brownfield site is as much art as science—it requires a unique skill set that few real estate developers have consistently demonstrated. The tremendous resources provided through our new team create a powerful option for both companies and cities plagued by brownfield sites to dispose of these troubled assets. After we collectively identify opportunities, our team will ensure that the sites we pursue can meet stringent remediation requirements, as we work with the communities where brownfields are located to help return communities to economic vitality.”

Prolific track records
The U.S. EPA defines brownfields as real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Definitions may vary by country, state or province.

Both Duke and Hemisphere have a wealth of experience in brownfield development. In recent years, Duke has developed major brownfield sites in Baltimore, Md., Linden, N.J., and Buffalo, N.Y. Hemisphere’s redevelopments span the gamut of real estate categories, including residential, office, commercial, retail, industrial and major municipal projects. Hemisphere’s Lakeview Bluffs redevelopment, in an alliance with sports powerhouse IMG Worldwide and IMG Academies, was identified in a case study by Harvard’s Graduate School of Design as “one of the most visionary and innovative redevelopment projects in the United States.”

Rather than focusing on a large number of short-term acquisition targets, Duke-Hemisphere will work to identify exceptional, long-term redevelopment opportunities where they can add strategic value through collective resources and expertise, noted Davis.

“These projects are the essence of ‘Sustainable Development.’ Of course, the team will place a heavy emphasis on green building approaches,” said Davis. In fact, in 2008, Duke was recognized as one of the top 50 Green Construction Contractors in the nation, according to Engineering News Record. Brownfield redevelopment should continue as an important priority under the Obama administration, as well as under state voluntary cleanup programs.

“This type of focused expertise is even more critical to communities in today’s economic climate, as many municipalities with limited resources place even greater emphasis on private development partners to help revitalize their communities and stretch available economic development resources,” said DeBoer.

Duke Realty Corp. specializes in the ownership, construction, development, leasing, and management of office, industrial, and health care real estate. The company owns, manages, or has under development more than 144 million rentable square feet in 24 major U.S. cities. Duke, which controls more than 7,100 acres of land for more than 107 million square feet of future development, also provides nationwide real estate solutions through its national development division.

Hemisphere Development LLC is a full-service real estate development company focused on acquiring complex brownfield sites. Hemisphere Development LLC specializes in acquiring title to and redeveloping environmentally distressed, underutilized and/or vacant real estate. Hemisphere Development LLC’s redevelopment projects include commercial, industrial, single-family residential, multi-family residential and recreational real estate.

Todd Davis, Hemisphere’s CEO, is the author of Brownfields: A Comprehensive Guide to Redeveloping Contaminated Property, a national best seller for the American Bar Association, Secretary of the N BAs, the brownfield industry’s premier industry association, and a nationally recognized author and speaker on brownfield topics.

Duke Realty Corp. is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index.