Keystone Development + Investment has secured a $62 million loan to convert two office buildings near Dadeland Mall into residential apartments. The project, which is unusual for South Florida, involves transforming the seven-story building at 9400 South Dadeland Boulevard and the eight-story building at 9500 South Dadeland Boulevard in unincorporated Miami-Dade County.
While office-to-residential conversions have become more common in places like New York due to rising vacancies from hybrid work trends, such retrofits are still rare in South Florida. The region’s office market experienced significant growth during the pandemic as companies relocated to the area.
According to public records, Arbor Realty Trust, based in Uniondale, New York, provided the financing through an affiliate. Keystone began construction five days after closing on the loan.
Keystone plans to create a total of 212 apartments—121 units at 9400 South Dadeland Boulevard and 91 units at 9500 South Dadeland Boulevard. Both buildings date back to the early 1980s and together make up part of Keystone’s broader Hyve development on an 8.3-acre site that currently features an office complex and two garages. After completing these conversions, Keystone intends to build a new 25-story apartment tower with 219 units where one of the existing garages stands.
A representative from Keystone told The Real Deal in May that both conversion projects are expected to finish next year.
Despite continued demand for offices driven by new businesses entering South Florida and record-high rents, some property owners are choosing demolition over conversion because of higher interest rates and changes in workplace habits. For example, after Ryder System vacated its former headquarters at 11690 Northwest 105th Street in unincorporated Miami-Dade County, Bridge Industrial acquired the site with plans for industrial redevelopment including two warehouses. Ryder moved its headquarters to a smaller location at 2333 Ponce de Leon Boulevard in Coral Gables due to shifts toward hybrid work models.
In another example from Boca Raton, BH Group, Pebb Enterprises, and Related Group plan to replace an existing office building on Office Depot’s headquarters campus with an eight-story apartment building containing 500 units. Two other office buildings on the campus will remain leased primarily by Office Depot.
“According to Keystone’s project filings to Miami-Dade and a company representative who spoke with The Real Deal in May. They are expected to be completed next year.”
