Holliday Fenoglio Fowler arranged the recent sale, which wasfacilitated with the help of $33.8 million in financing, alsoarranged by HFF. Jon Mikula, senior managing director, andassociate director Michael Klein of the firm's Florham Park, NJoffice represented new owner Principal Real Estate in the financingtransaction. The five-year loan package came from a life insurancecompany, which was not identified. Further details were notreleased.

|

"This deal is a sign that runs contrary to the perception ofsome of what is happening out there in the market," Mikula tellsGlobeSt.com. "This is a trophy asset, selling at a high watermark,financed by a life insurance company. The Parsippany class A officemarket is supply constrained and lacks large blocks of new space,and as a result, the property's competitive set has seenever-increasing rates since 2004."

|

Located within the Center of Morris County office park near theintersection of Interstates 80 and 287, 200 Kimball Dr. wasinitiallyconstructed on a spec basis in 2001 by Gale &Wentworth, now the Gale Real Estate Services subsidiary ofMack-Cali Realty Corp., and subsequently sold to Invesco in a dealunreported at the time. J.P. Morgan Investments was Gale's partnerin the original construction of the property.

|

Before the building was even fully completed, however, Novartissigned on for 143,000 sf with a long-term lease for the NorthAmerican headquarters of its Novartis Consumer Health division. Thelaw firm of Kelley Drye & Martin subsequently leased theremainder of the building's space, and both tenants remain at thesite with their long-term leases. Officials of Principal RealEstate Investors and Invesco could not be reached for comment.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.