Miami-Area Office Portfolio Fetches $41M

Ownership of Dadeland Towers North, a group of three office structures just outside of Miami in the suburban town of Kendall, Fla. has changed hands. The deal leaves Cabot Investment Properties with nearly $41.2 million in exchange for the 244,200-square-foot complex, which was acquired by a joint venture involving Keystone Property Group and Colliers Abood Wood-Fay. Occupying a 4.6-acre parcel, Dadeland Towers (pictured) is located off U.S. 1 in an area of the city that is in the midst of a rebirth. The structure at 9200 Dadeland Blvd. encompasses about 150,500 square feet, while the buildings at 9300 and 9350 Dadeland Blvd. feature 81,000 and 12,700 square feet, respectively. All three were originally developed in the 1970s. In addition to the eight-story, seven-story and two-story structures, the property also features a five-story parking facility. Home to a variety of business types, Dadeland Towers’ tenant roster includes Independent Purchasing Corp., City College and law firm Quintairos, McCumber, Prieto & Wood P.A. Burger King Corp. is also a tenant, occupying approximately 40,000 square feet in 9300 Dadeland building. The campus-style complex was 91 percent leased at the start of the offering. “There was as a substantial amount of interest in the property for two reasons,” Charles Foschini, managing director with CBRE | Melody told CPN today; Foschini and colleague Christian Lee, vice chairman of CB Richard Ellis’ institutional group, represented the seller. “One, the Dadeland submarket is one of the healthiest submarkets in the State of Florida. Secondly there’s a lot of upside opportunity in the property. There’s a pending vacancy; Burger King will be moving to a new location so there is an opportunity to renovate and lease at a higher rate. Market rates are higher than a lot of the in-place rents.” The current average asking rate for Class B office space in the Kendall/South Dade submarket is $26.87 per square foot, according to a fourth quarter 2007 report by real estate services firm Grubb & Ellis Co.