Rumor Mill Churns Around Flagler Development Sale

MIAMI—Flagler Development may soon trade hands again. The rumor mill is churning about a Fortress Investment Group sale of Flagler’s 12 million-square-foot-portfolio to TPG Capital. Other rumors have some of the assets going to AEW Capital and Parkway.

A Flagler spokesperson declined to comment on the rumors, but the deal seems imminent. Sources say TPG Capital, a Fort Worth, TX-based investment firm, is expected to pay $1 billion for Flagler’s more than 12 million square feet of class A office and industrial space across the state. TPG Capital, AEW Capital and Parkway could not immediately be reached for comment.

“It makes all the sense in the world for all the parties involved,” says Warren Weiser, chairman and co-founder of Continental Real Estate Companies. “It would give the buyer a great platform for Florida, which will enable them to be a substantial player in this marketplace over night.”

The sell-off may explain some of the recent departures at Flagler. Jose Hevia, formerly CEO of Flagler, left the company unexpectedly last summer. Vincent Signorello, the company’s CFO, took over as president and CEO.

In December, George Pino, former senior vice president of Flagler, left the firm to launch State Street Realty with two other former Flagler employees. In January, Flagler brought on Manuel Fernandez as executive vice president of Flagler’s Logistics Operations. Flagler is spearheading the development of its South Florida Logistics Center—a 400-acre intermodal logistics complex adjacent to the Miami International Airport—as well as a newly launched logistics practice.

“There are a lot of opportunities around Florida ports with the Panama Canal expansion,” Weiser says. “Beyond its land around Miami, Flagler has a lot of holdings in the Jacksonville area and around the port there. These are valuable assets.”