Calling the asset "a perfect addition to the Flagler portfolio," Robert W. Anestis, chairman and CEO of Flagler's parent company, St. Augustine-based Florida East Coast Industries, notes that it is located in the same submarket as Flagler Station. Formerly called Beacon Station Business Park, the Flagler Station complex currently contains 3.3 million sf of office and industrial space and, at full build-out, will expand to about nine million sf.
The Doral Concourse's proximity to the larger development, Anestis says, "will allow Flagler to add value through lease up and stabilization." Last December, Flagler sold a 460-acre tract of undeveloped land adjacent to Flagler Station for $80 million and placed the assets in a 1031 tax-exchange escrow account while reviewing reinvestment opportunities. Anestis says today's acquisition is the first purchase utilizing a portion of the tax-deferred proceeds from the land sale.
"We have a number of other potential land and building acquisitions in the process to re-deploy the remaining proceeds," he says. "The potential land parcels will complement our existing portfolio as well as provide a renewable source of value going forward."
Flagler's president, G. John Carey, says the quality and location of the building attracted the company's attention. "We think there is significant upside in this building from additional leasing and appreciation in a land-constrained office market."
Stuart Gordon, SVP of the Miami office of Coral Gables-based Codina Realty Services, is marketing the building along with Shane Soefker, a Flagler VP and South Florida market officer. Gordon tells GlobeSt.com the asking rental rate is $17.50 per sf net.
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