Duke Realty also plans to buy a six-acre tract of land next to the buildings for $2.4 million. Flagler Development would recognize an approximately $3.8 million gain from both deals.
"This transaction strategically benefits both the buyer and seller," G. John Carey, president of Flagler, says in a statement. "Flagler will now focus on its 100%-owned properties and entitled and undeveloped landholdings."
Chris Seger, senior vice president of Florida operations for Duke Realty, added: "Beacon Pointe at Weston is exactly the type of high-quality, landmark office buildings Duke wishes to own and lease. We see strategic value in owning the office buildings and believe significant value can be obtained for the adjacent undeveloped land. Beacon Pointe is a destination office complex, and demand will certainly lead to additional development in the market."
Among Flagler 100%-owned properties are three warehouse buildings at Beacon Station, South Florida's largest business park. Flagler bought out Duke's 50% interest in the 180,000-sf buildings in January. At that park, near Miami, Flagler owns more than 3.3 million sf of space.
The $22.3 million value of that transaction included the buildings, The Office Centre at Southpoint, a 59,000-sf office building, and an adjacent 4.76-acre tract of developable land in Jacksonville --two other properties Flagler acquired from Duke Realty.
Duke Realty, a large national real estate company, owns mainly office, industrial and retail properties in 13 major US cities. It owns, manages or has under development properties totaling more than 116 million sf. The company also controls about 3,900 acres of undeveloped land.
Flagler, based in Jacksonville, owns, develops, leases and manages about 7 million sf of class A office and industrial space mainly in Miami, Fort Lauderdale, Orlando and Jacksonville. The total includes 403,000 sf under construction. Flagler, the wholly owned commercial real estate development subsidiary of publicly traded Florida East Coast Industries Inc., also owns 938 acres of entitled land in Florida and about 4,900 acres in other Florida properties.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
