Keystone Nabs Miami Asset in Sale-Leaseback Deal

By Timea Papp

Dadeland Tower South in Miami

Avison Young brokered the $36 million sale of Dadeland Towers South, a two-building office portfolio in the Kendall submarket of Miami. Keystone Property Group acquired the assets totaling 228,136 square feet and concurrently completed a 102,000-square-foot, long-term lease with the seller, AvMed Inc. The deal also included the purchase of an on-site 246,319-square-foot parking garage.

Hands-on ownership

Located at 9400-9500 S. Dadeland Blvd., the buildings were constructed in 1979 and feature on-site management office, 24-hour security service personnel, valet parking, on-site deli and sundry shop. The new owner plans to invest in an extensive modernization program including upgrades to the buildings’ exteriors, common areas, landscaping and the parking garage.

Avison Young’s John Crotty, principal, and Michael Fay, principal & managing director, represented Keystone Property Group in the transaction. With this acquisition, Keystone owns the entire campus, which is 89 percent leased. Located at 9200, 9300 and 9350 S. Dadeland Blvd., the northern section of the property comprises three office buildings and a parking garage. Keystone has owned the 245,912-square-foot Dadeland Towers North for more than 10 years.

“With full control of all Dadeland Towers properties, our client benefits from the increase of the assets’ value–including the land–and the flexibility to make more strategic use of the property within both the short- and long-term. Furthermore, the lease-back transaction with the seller is a testament to tenant demand and the locational quality of the portfolio,” said Crotty, in prepared remarks.

Situated adjacent to the Miami-Dade Metrorail Station, the Dadeland Tower office park is accessible from U.S. Highway 1 and the Palmetto Expressway. Nearby amenities include the Dadeland Mall, which offers several retail venues, banks and restaurants.

“The property’s location within the Downtown Kendall Urban Core Zoning District positions it well for new construction, and we’re very excited about the possibilities this provides,” added Keystone Property Group President Richard Gottlieb.

Image courtesy of Yardi Matrix