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.
AEW had the inside track on the property as it provided $200 million in financing on Flagler Station to Fortress Investment Group after it bought Flagler Development. As a result, AEW had the ability to overrule any sale of the property. Regardless, TPG had enlisted CBRE to market the property once it entered into an approximately $1.2 billion contract for the entire portfolio.
AEW’s purchasing price is similar to the $300 million it should receive from the sale of the portfolio because of its equity position. The price translates to about $80 per square foot and a 5 percent capitalization rate, the Journal said. [SFBJ]