Flagler Station Sold to AEW Capital for $340M
- Apr 13, 2012
Less than three months ago, TPG Capital’s intent of buying Flagler Development’s 12 million-square-foot portfolio of developed assets for over $1 billion was one of South Florida’s biggest commercial real estate news stories. Yet last month, the deal fell through due to a failure of the parts to agree on a purchasing price.
Months of speculation followed, with rumors that AEW Capital Management had planned to buy the Flagler Station portion of the portfolio from prospective buyer TPG.
A deal was finally signed this Thursday for the industrial portfolio at the Flagler Station business park, bought by AEW Capital Management from owner Flagler Development. According to The Miami Herald, the terms of the purchase on behalf of the AEW Core Property Trust have not been disclosed, but sources familiar with the deal have estimated the price at $340 million, or nearly $81 per square foot.
Flagler Station, located within Miami Dade County’s Airport West Industrial submarket, is South Florida’s largest business park. AEW Capital Management has now assumed ownership of 4.2 million square feet of office and industrial space, which serve as home to tenants like Ryder Systems, FedEx and Brightstar. The deal does not include the rest of nearly 150 acres of undeveloped land in and around the park that remain under Flagler ownership, land which can handle future development of up to 2.4 million square feet.
As reported by The Miami Herald, AEW has retained Flagler to continue to manage and lease the portfolio. AEW Capital Management—a leading real estate investment advisor—manages, along with its affiliates, more than $33 billion of capital invested in $47 billion of property and securities in North America, Europe and Asia.