Keystone Property Group paid $36 million for Dadeland Towers South and inked a lease with the seller, insurance giant AvMed.
For Keystone, the deal adds to its holdings in the Kendall-Dadeland area. The commercial real estate firm picked up the two-building, 228,000-square-foot portfolio at 9400 to 9500 South Dadeland Boulevard, plus a 246,300-square-foot parking garage. AvMed leased back 102,000 square feet in a longterm lease, according to a press release.
Avison Young’s John K. Crotty and Michael T. Fay, principals, and Barry D. Lapides of Berger Singerman LLP represented Keystone in the purchase.
Keystone already owned Dadeland Towers North, three buildings and a parking garage on the northern section of the property, which is 89 percent leased. The Kendall submarket reported an 8.5 percent vacancy rate for the first quarter of this year, according to Avison Young. Office rents are also up as new office supply lags behind apartment and mixed-use development in the area.
Keystone plans to upgrade the exteriors, common areas and landscaping at Dadeland Towers South. Keystone president Richard Gottlieb said in the release that the buildings are positioned well for new construction, and that the firm looks for developable properties in transit-oriented areas.
Development in the Dadeland submarket includes the Motion at Dadeland, a luxury rental project by Adler Group and 13th Floor Investments, Greystar’s plans to convert an office building into luxury senior housing, and Jimmy and Kenny Tate plan to redevelop a commercial building and lot at 7300 North Kendall Drive.
In August, an investment group led by ABS Partners Real Estate and Acre Valley Real Estate Capital paid $150 million to acquire the Datran Center, a two-tower office complex nearby at 9100 and 9130 South Dadeland Boulevard. – Katherine Kallergis