Flagler Development Group And AMB Property Corporation Enter Into A Build-To- Suit And Purchase Contract With Commercebank N.A.

CORAL GABLES, Fla., Dec. 19  /PRNewswire-FirstCall/ -- Flagler Development Group ("Flagler"), the wholly-owned commercial real estate arm of Florida East Coast Industries, Inc. (NYSE:FLA) ("FECI") and AMB Property Corporation (NYSE:AMB), a leading global industrial real estate company, have entered into a contract with Commercebank N.A., for the development of a 100,000 square foot stand alone building within Beacon Lakes business park to house Commercebank's South Florida Customer Service Center. Beacon Lakes is a joint venture project between Flagler and AMB Property Corporation. Construction is expected to commence in late 2006, with completion late in 2007.

"This is a great deal for the park, it confirms that we have the ability to accommodate the expansion needs of its tenants and buyers," said Rafael Romero, Vice President of Development and Project Director for Beacon Lakes. "By virtue of the park's ultimate size at build-out, which is expected to be more than six million square feet, Beacon Lakes Business Park was designed to accommodate the present and future needs of companies seeking build-to-suit, customized space."

In addition, Beacon Lakes executed a lease with RMS Services-USA, Inc. for 35,000 square feet, bringing the overall occupancy of the park to 93 percent.

The leasing agents for the property are David C. Albert, SIOR, Vice President of Codina Realty Services. More information on the property can be found at http://www.codina.com/ .

Beacon Lakes Business Park is situated at the intersection of the Florida Turnpike, NW 25th Street and State Road 836 in Miami-Dade County, the park provides owners with direct access to Miami International Airport, Port of Miami, restaurants, hotels, international banks, all major South Florida thoroughfares. It is conveniently located within minutes from downtown Miami, Coral Gables, and other urban centers.

Flagler Development Group (Flagler) owns, develops, leases and holds in joint ventures approximately 8.8 million square feet of Class-A office and industrial space, as well as an additional 1,056,700 square feet under construction. Flagler space consists of Class-A office and industrial properties, primarily in Jacksonville, Orlando, Ft. Lauderdale and Miami. In addition, Flagler provides construction, consulting, third party management (includes Flagler's wholly owned portfolio in addition to 11.1 million square feet for third parties) and brokerage services and owns 828 acres of entitled land in Florida, which is available for development of up to an additional 15.8 million square feet. Flagler also owns approximately 3,158 acres of other Florida properties. For more information, visit the Company's website at http://www.flaglerdev.com/ ./

Florida East Coast Industries, Inc., (FECI) headquartered in Jacksonville, FL, conducts operations through Flagler Development Group (Flagler) and Florida East Coast Railway, L.L.C. (FECR). FECI conducts its real estate operations through Flagler which owns, develops, leases and holds in joint ventures approximately 8.8 million square feet of Class-A office and industrial space, as well as an additional 1,056,700 square feet under construction. Flagler space consists of Class-A office and industrial properties, primarily in Jacksonville, Orlando, Ft. Lauderdale and Miami. In addition, Flagler provides construction, consulting, third party brokerage and property management (includes Flagler's wholly owned portfolio in addition to 11.1 million square feet for third parties ) services and owns 828 acres of entitled land in Florida, which is available for development of up to an additional 16 million square feet. Flagler also owns approximately 3,158 acres of other Florida properties. Florida East Coast Railway, L.L.C. (FECR), a subsidiary of FECI, is a regional freight railroad that operates 351 miles of mainline track from Jacksonville to Miami and provides intermodal drayage services at terminals located in Atlanta, Jacksonville, Ft. Pierce and Miami. For more information, visit the Company's website at http://www.feci.com/ .

AMB Property Corporation.(R) Local partner to global trade.(TM)AMB Property Corporation(R) is a leading global developer and owner of industrial real estate, focused on major hub and gateway distribution markets throughout North America, Europe and Asia. As of September 30, 2006, AMB owned, or had investments in on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 124.8 million square feet (11.6 million square meters) and 1,109 buildings in 42 markets within eleven countries. AMB invests in properties located predominantly in the infill submarkets of its targeted markets. The company's portfolio is comprised of High Throughput Distribution(R) facilities- industrial properties built for speed and located near airports, seaports and ground transportation systems. For more information, visit the Company's website at http://www.amb.com/ .

Commercebank N.A., one of the largest privately held banks in South Florida, is a wholly owned subsidiary of Commercebank Holding Corp., which in turn is owned by Mercantil Servicios Financieros, the largest international financial institution headquartered in Venezuela, with more than 80 years of experience in banking. Commercebank has assets in excess of $4 billion. The Bank is headquartered in Coral Gables, Florida, with eleven branches throughout Miami-Dade County, two in Broward County, one in Manhattan, New York, and one in Houston, Texas. It also has loan production offices in Tampa and in Weston, Florida. The Bank offers a wide variety of domestic, international, personal, and commercial banking services, including investment, trust, and estate planning through its subsidiaries, Commercebank Investment Services, and Commercebank Trust Company, N.A.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include the Company's present expectations or beliefs concerning future events. These statements may be identified by the use of words like "plan," "expect," "see," "aim," "believe," "project," "anticipate," "intend," "estimate," "will," "should," "could," "may," and other expressions that indicate future events and trends. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties that could cause actual results to materially differ from those contained in these forward-looking statements. Important factors that could cause such differences include, but are not limited to, changes in the general and local real estate market or in general economic conditions, and other risks inherent in the real estate business. Further information on these and other risk factors is included in the Company's filings with Securities and Exchange Commission, including the Company's most recently filed Forms 10-K and 10-Q. The Company assumes no obligation to update the information contained in this news release, which speaks only as of its date. 

DATASOURCE: Florida East Coast Industries



CONTACT: Investors, Bradley D. Lehan of Florida East Coast Industries,

[phone]; or Media, Rosemary Jackson of Flagler Development Group,

[phone]



Web site:  http://www.feci.com/

http://www.codina.com/

http://www.amb.com/

http://www.flaglerdev.com/ 

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