Keystone Property Group buys Dadeland office towers for $36M

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.......

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