Delray Beach Office Park Changes Hands For $20 Million

CBRE arranged the sale of The Arbors Office Park in Delray Beach.
The two-building, 174,816-square-foot asset was acquired from 1615 Arbors North Associates, LLC, and 1625 Arbors South Associates, LLC, by Grover & Corlew, LLC, for $20.15 million. CBRE represented the seller in the sale.
CBRE also originated a $17.2 million non-recourse bridge loan on behalf of the buyer from a mortgage REIT, the proceeds of which provided for the property’s acquisition along with additional funding for leasing and capital improvement costs.
 

“The Arbors represents the textbook repositioning of a property through creative lease structures. Over just three years of ownership, the seller was able to expertly increase occupancy from 37% to 81% today. With nearly 20% vacancy and below-market rents, there is still a value-add opportunity for the buyer as well,” said Senior Vice President Scott O’Donnell of CBRE Investment Properties.

 

Regarding the loan, Jason Hochman, Vice President of CBRE Debt & Structured Finance, added: “After reviewing several competitive quotes, our client selected a lender with whom we felt very comfortable, having recently closed another loan with them. They provided the most desirable terms and were able to structure the loan around issues that were either known in advance or came up during due diligence.”

In addition to its proven lease-up ability, The Arbors Office Park features desirable frontage and visibility from I-95. The office community is near redevelopment opportunities that include significant retail projects underway along Linton Boulevard and the prospect of mixed-use redevelopment along Congress Avenue.
The property has benefited from approximately $480,000 in recent capital improvements. Building amenities include efficient floor plates that can accommodate a variety of tenant profiles, attractive interior finishes that include polished marble tiles, full building-height atriums, and glass-walled balcony perches.
O’Donnell collaborated with CBRE’s Dominic Montazemi, Miguel Alcivar, Christian Lee, Jeffrey Kelly and Deborah Fink in marketing the property for sale. Hochman partnered with Charles Foschini and Chris Apone in securing the financing.

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