Flagler Development President Vincent Signorello and Flagler Station

Texas-based TPG Capital’s deal to buy the Flagler portfolio, expected to be worth more than $1 billion, appears on the verge of falling through because a price could not be agreed upon.

According to the South Florida Business Journal, which first reported the deal earlier this year, negotiations stalled   on the non-Flagler Station portion of the 12 million-square-foot portfolio, which was expected to sell for a total of $1.2 billion (note: correction appended). [more]

Flagler Station

From left: AEW Capital CEO Jeffrey Furber and Flagler Station

When TPG Capital acquired the entire 12 million-square-foot Flagler portfolio of developed land, it immediately put one prime asset, Flagler Station in Miami, back on the market, according to reports. Now the South Florida Business Journal reported that AEW Capital will likely scoop up the 4.1 million-square-foot office complex for more than $300 million. [more]

From left: Flagler Station in Miami, Beacon Court in Boca Raton and the Doral Concourse

TPG Capital is in contract to purchase Flager Development’s entire 12 million-square-foot portfolio of developed assets, the South Florida Business Journal reported.

The portfolio includes industrial and office space throughout Florida, especially in the Northeast, and is expected to be worth more than $1 billion. While the sale has yet to be finalized, TPG has already tapped CBRE Group to market Flagler Station in Miami. [more]

While others in the property market focused their attentions on the Anglo Irish Bank portfolio bidding war, Wells Fargo & Co. has quietly beaten out 25 real estate investors and banks, including Lone Star Funds, Blackstone Group and TPG Capital, to win Bank of Ireland’s $1.4 billion U.S. commercial real estate portfolio for close to face value, sources told the Wall Street Journal. The sale has not yet closed.
The 25 loans included in the portfolio are backed primarily by property in New York, Boston and Washington, and are classified as performing, the Journal said.
Bank of Ireland has been deleveraging by selling off its foreign assets in bulk, after Ireland’s financial regulatory body instructed the bank to reduce its loan portfolio earlier this year by 25 percent, or $43 billion, by the end of 2013.
Holliday Fenoglio Fowler represented the bank in the deal. [WSJ]

Banks and private equity firms are eagerly throwing their hats in the ring for the approximately $9.5 billion U.S. real estate portfolio on offer from Anglo Irish Bank, the Wall Street Journal reported. The largest single commercial property loan sale since the start of the recession, complete with a number of troubled loans, the portfolio has attracted much attention from investors in distressed property.
By the deadline yesterday, the Blackstone Group, Lone Star Funds, LNR Property, TPG Capital, Colony Capital, Area Property Partners, Starwood Capital Group, Five Mile Capital Partners and the CIM Group had all submitted or were intending to sumbit bids for at least some portion of the portfolio, sources said. The portfolio has also attracted the interest of banks, including Wells Fargo, JPMorgan Chase and Bank of America, given that there are three portfolios of loans that are performing and expected to mostly stay that way through maturity, the Journal said. [more]

From left: Anglo Irish buildings the Apthorp in New York and Mandarin
Oriental in Boston

Banks, private equity firms and investors may be tallying their resources as first-round bids for a $9.5 billion U.S. commercial real estate loan portfolio owned by failed lender Anglo Irish Bank are due tomorrow, Reuters reported.
However, anxiety among investors over the fluctuating capital markets may slightly reduce the offering prices, as the properties’ performances become more difficult to underwrite.
“With nervousness, everybody’s discount rate goes up and nobody knows exactly by how much. It makes it more difficult and likely makes it less valuable,” Richard Green, director of the University of Southern California’s Lusk Center for Real Estate. “If I’m bidding for something where I’m really uncertain about its value, I’m not going to bid as much.” [more]

An investment group headed by Starwood Capital Group beat out the Related Companies, Lone Star Funds and Colony Capital to win a 40 percent stake in a company created by bank regulators to contain the assets of Corus Bank. The bank was seized last month by the Federal Deposit Insurance Corporation, and has a $4.5 billion loan portfolio that includes many failed South Florida condominium projects. The winning consortium includes TPG Capital (formerly Texas Pacific Group), Perry Capital and WLR LeFrak, a venture that involves investor Wilbur Ross and real estate company the LeFrak Organization. The winning bidder got the assets for a roughly 40 percent discount in a cash and debt deal.