PALM BEACH, FL-The Arbors Office Park has a new owner. The three-building office park was only 45% occupied when it traded hands, offering the buyer plenty of upside potential as the market recovers. The property spans 244,247 rentable square feet.

“We had tremendous investor interest in the deal,” CBRE vice chairman Christian Lee tells GlobeSt.com. “Investors in today’s market are looking for either a trophy or a train wreck. This deal would fall in the train wreck category.”

A train wreck based only on the high vacancy. Built in 1981, the property is a class A office park with a high 4.63 per 1,000 square foot parking ratio. Key tenants include Alfred Angelo, Sperry & Hutchinson, Twin-Star International and Escalate. RexxHall Realty purchased the asset. CBRE declined to disclose the seller and the sales price.

“RexxHall has a big capital budget and plans to renovate the buildings and implement an aggressive leasing program,” Lee says. Lee worked the deal along with team members Charles Foschini and Christopher Apone with CBRE’s Institutional Group in Miami and Scott O’Donnell and Dominic Montazemi of the Private Capital Group in Palm Beach County.

Delray is a secondary market to Boca Raton, which has seen rising vacancy rates during the recession. For example, IBM reduced its footprint in Boca Raton from 160,000 square feet to 38,000 square feet. CBRE reports negotiated lease rates lower than quoted as landlords continue offering generous concessions until more space is absorbed.

Notably, the Arbors Office Park is slightly out performing the Delray Beach market with its 45% occupancy rate. The Delray Beach market vacancy is a whopping 57%.

No buyer representative was involved in the transaction. Stuart T. Kapp of Proskauer Rose LLP served as Rexxhall Realty’s legal counsel in the transaction.