MIAMI—Flagler has traded hands again—or at least a prime asset that represents about a third of its portfolio. Rumors that real estate investment advisor AEW Capital Management was in the process of acquiring Florida’s largest full-service commercial real estate firm were partially true. Now, some are wondering if Flagler will put the shovel in the dirt next and build a new park.

AEW last week snapped up Flagler’s industrial portfolio at the Flagler Station business park. AWE acquired the 33 industrial assets, which total approximately 4.2 million square feet, on behalf of AEW Core Property Trust (U. S.), the firm’s open-end core real estate fund. The price: $340 million. AEW was expected to pay $1 billion for Flagler’s more than 12 million square feet of class A office and industrial space across the state.
 
“Given the performance of Miami’s industrial market over the last 12 months, we were certain that a class A portfolio with such critical mass would garner serious interest from institutional investors,” Vincent Signorello, president of Flagler, said in a statement. “AEW’s reputation and their commitment to this long-term, strategic capital investment elevate the market as a whole.”

Located in Miami-Dade County’s prolific industrial Airport West submarket, Flagler Station is South Florida’s largest business park. The master-planned campus opened in 2001 and has a tenant roster that includes Ryder Systems, Lagasse, FedEx and Brightstar, Betty Dain Creations, and Crowley.

“AEW has a long history of investing in Southeast Florida, and this latest acquisition illustrates our belief in the strength of the Miami/Medley market, which services the Port of Miami, Miami International Airport and Port Everglades,” Dan Bradley, senior portfolio manager for the AEW Core Property Trust, said in a statement.  “Moreover, it is an added benefit that Flagler will stay on to manage and lease these properties and help grow the value of these assets.”
 
In addition to staying on as leasing manager for the portfolio, Flagler also retains ownership of about 150 acres of undeveloped land within and adjacent to Flagler Station. Flagler can develop roughly 2.4 million square feet of commercial real estate on the land. Although Flalger is not commenting on its immediate plans for the land, the timing to develop the asset could be strategic with the Panama Canal project and Port of Miami upgrades.

Although the completion of the improvements related to the Panama Canal and the Port of Miami about two years away, Walter Byrd, managing director at Transwestern, tells GlobeSt.com he is already seeing the impact on the industrial real estate market in Miami. He says the largest and most sophisticated companies are looking to lock-in space for the long term in anticipation of the increased flow of goods. If Flagler started building now, the timing could be right.

“As the demand for the highest quality and most functional buildings increases, new construction is expected with a few projects already breaking ground,” Byrd says. “We should see some significant and large tenants enter into long-term lease commitments over the next few quarters.”