Flagler Plans 5M-SF Office-Distribution Campus

Flagler is paying a gross $13,985 per acre, or 32 cents per sf, for the dirt but the effective price of the land is $25,135 per acre, or 58 cents per sf, because only 370 acres of the 665-acre total are usable for development, says Robert W. Anestis, chairman, president and CEO of St. Augustine-based Florida East Coast Industries Inc., Flagler's parent. The property is primarily zoned for industrial development but will need local and state approvals to include an office component.

Flagler has closed on 525 acres and will be closing shortly on 140 contiguous acres. The 525-acres were purchased in two separate deals. A total 425 acres were acquired from D. Burke Kibler and Rebecca Watson Bronson of Lakeland. Another 70 acres were bought from Pine Valley Dairy of Polk County. A separate seller is involved in the 140-acre transaction.

"This strategic purchase of land along the I-4 corridor, between Tampa and Orlando, will add to Flagler's existing land bank and provides a renewable source for future industrial development," Anestis says. "The purchase of the 665 acres, utilizing tax deferred proceeds, will provide scale in a new market that we believe is clearly well-positioned as the industrial warehouse and distribution business along I-4 grows."

The property is adjacent to Publix Super Markets Inc.'s corporate headquarters and the Lakeland Linder Regional Airport. "Flagler has been looking for an industrial opportunity in the fast-growing I-4 corridor for some time," says Flagler president G. John Carey. "This parcel along I-4 between Tampa and Orlando is ideal."

Flagler already has submitted its new distribution-office center plans to the Florida Department of Community Affairs which reviews all developments of regional impact because of their potential affects on local neighborhoods.

"This initiative represents a major economic development opportunity for the city of Lakeland and Polk County," Carey adds.