The Florida expansion comes on the heels of acquiring approximately one million sf in the Chicago area, Keystone Property Group vice president of acquisitions Matt Sigel tells GlobeSt.com. "Florida was attractive to us because it's an institutional market and there's a lot of liquidity in good times and bad," Sigel says.
Sigel says the company will focus on acquiring value-add opportunities in the key Florida markets of Miami, Fort Lauderdale, West Palm Beach, Tampa, Orlando, and possibly Jacksonville. Although the company does not have a specific value amount or total square footage of properties it plans to acquire, Sigel says he anticipates the company will acquire another 500,000 sf to one million sf throughout the year.
As part of its expansion plans, the company acquired the 244,225-sf Dadeland Towers North in Miami for $41.15 million. The company also acquired Pinebrook, a 154,984-sf, six-building flex/office center in Largo for $11.05 million. The company plans to complete a third acquisition this week, a 150,000-sf property in Miami Lakes.
Sigel says the Dadeland Towers North acquisition is reflective of the company's acquisition strategy. "Dadeland is located in an infill location in a supply-constrained market," he says. "It's a somewhat outdated class A asset that performs well."
The company is planning extensive renovations to the property including replacing the exiting facade, upgrading the HVAC system, gutting the lobbies, and renovating the common areas. "When you add the acquisition cost and the cost of rehabilitation, it's still a substantial discount to new construction," Sigel says.
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