Pennsylvania Developer Lands $62M for South Florida Office-to-Resi Conversion

Office-to-apartment conversions are making their way to South Florida, with Keystone Property Group landing a $62 million loan to launch a redevelopment project in Dadeland, Fla.

The three-year debt from Arbor Realty covers an office campus between 9200 and 9500 South Dadeland Boulevard, south of Dadeland Mall off U.S. Route 1. The 8.3-acre property includes three buildings that were built between 1979 and 1982, and span a total of 474,455 square feet.

Construction got underway this week to turn two office buildings, housing about 230,000 square feet, into 212 apartments, according to a filing with Miami-Dade County. A representative for Keystone Property Group confirmed the conversion plans to Commercial Observer.

The conversion dates back to 2022, when Keystone Property Group filed plans to turn the complex into a 486-unit development. The developer, based in Bala Cynwyd, Pa., purchased the property for $36 million in 2017, according to property records. 

In June, Keystone put forth plans for an additional 121 apartments, the South Florida Business Journal reported.  

South Florida has seen few office-to-apartment conversions, unlike New York, where vacant land is scarce and demand for housing remains strong. These projects are also notoriously difficult and expensive, and rent growth in South Florida has stalled over the past year. 

A spokesperson for Arbor Realty did not immediately respond to requests for comment.

Julia Echikson can be reached at jechikson@commercialobserver.com.