January 05 2007
Orlando Business Journal - (Duke and Kroeger break out to form own brokerage)

Thirty-five years ago when Orlando debuted its castles and princesses, finding developable land was pretty much like shooting fish in a barrel.

In the boom days, many a $1 million was earned simply by buying dirt-cheap raw land and reselling it high.

Most of the fish have long since left that barrel, begging the question: Is this a good time to start an independent commercial real estate venture?

Craig Duke and Cory Kroeger, who have a combined 23 years of commercial real estate experience, left the safety of a large brokerage in November to open their own commercial and industrial real estate shop, dubbed Duke Kroeger & Co.

Duke and Kroeger explain their decision to break out on their own now by pointing out that what matters most isn't the number of fish available -- it's the skill of the shooter.

"This market is so much more mature than it was when I got into it in the late '80s," says Duke, 45, who learned the business from his father, the founder of Duke Properties. "The biggest obstacle we would seem to have is inventory. There's very little on the surface. We've dug up a lot of the deals we made."

The numbers they report support their skills with a shovel: In little more than a month, they have made three sales totaling $15 million.

Their success doesn't surprise their former boss, Robin Webb.

"I have great respect for both of those men and I wish them well," says Webb, managing director of Coldwell Banker Commercial's Central Florida office.

Duke and Kroeger's strategy includes expanding the location of land to be considered for commercial development, stretching far beyond the traditional metro Orlando borders to include nearly every corner of Lake, Volusia, Polk and rural Osceola counties, as well. When raw land isn't available where a client wants to buy, chances are good there's an existing building that can be made to work with a cost-effective refitting.

"We're doing what I've been doing for the last 20 years," says Duke. "With the activity we see in this market, we'll probably do $75 million in the first year. We think that's realistic, and we're off to a good start."

There's still plenty of potential in this market, concurs John Krug, vice president of business development for the Metro Orlando Economic Development Commission. Orlando remains a relatively young market, compared with the older, more built-out Tampa, he says. He believes brokers familiar with the resources this area offers probably will do well.

Duke and Kroeger certainly seem familiar with the geography. Duke worked alongside his father until Duke Properties was bought by Coldwell Banker Commercial's Central Florida office in July 2003. He spent the last three years with that company. Kroeger, 30, spent two years as a Coldwell Banker Commercial broker, joining that firm after working for Frazee Inc., a Southeast U.S. construction company that specializes in hotel, time share and retirement-home renovations.

They say their backgrounds complement each other, and that harmony is exemplified in the relationship they have with their largest client.

Consider: Frazee Inc. CEO Chuck Frazee, an Orlando resident who worked with Duke's now-retired father since starting his company 30 years ago, shows no indications he'll take his business elsewhere.

"They have always been very honest with me about property evaluations and what I could do and not do with it afterward," says Frazee. "They've never disappointed me. More than once they've advised me not to buy a building when I would have otherwise and they would have made a commission on the deal."

Orlando Business Journal - January 5, 2007

by Tom Brinkmoeller

Contributing Writer