Keystone Development + Investment has secured a $62 million loan to convert two office buildings near Dadeland Mall in Miami-Dade County into residential apartments. The project is notable as office-to-residential conversions remain uncommon in South Florida, where the office market has generally performed well compared to other regions like New York.
The financing was provided by Arbor Realty Trust, based in Uniondale, New York. According to property records, Keystone began construction shortly after the loan closed.
The plan involves transforming a seven-story building at 9400 South Dadeland Boulevard into 121 apartments and an eight-story building at 9500 South Dadeland Boulevard into 91 apartments. Both buildings date back to the early 1980s and are located in the Kendall area of unincorporated Miami-Dade County. Keystone expects to complete both conversions next year.
These changes are part of Keystone’s broader Hyve project on an 8.3-acre site that currently features an office complex and garages. After finishing the conversions, Keystone intends to replace one garage with a new 25-story tower containing 219 apartment units.
While many landlords in South Florida have opted for demolition rather than conversion due to higher interest rates and shifting work habits, some projects have taken different paths. For example, after Ryder System vacated its headquarters at 11690 Northwest 105th Street because of hybrid work trends, Bridge Industrial purchased the property and plans to build two warehouses totaling 330,000 square feet. Ryder subsequently relocated its headquarters to a smaller location at 2333 Ponce de Leon Boulevard in Coral Gables.
In Boca Raton, BH Group, Pebb Enterprises, and Related Group (led by the Pérez family) plan to redevelop part of Office Depot’s campus by replacing an existing office building with an eight-story apartment structure containing 500 units. Two other office buildings on the campus will remain primarily leased to Office Depot.
A representative from Keystone spoke with The Real Deal about these plans in May but did not provide further comment for this story.
