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PARSIPPANY, NJ-Principal Real Estate Investors has acquired 200 Kimball Dr., a 175,100-sf class A office building also known as 3 Center of Morris County here. The Des Moines, IA-based Principal Real Estate acquired the fully leased, five-story building from Invesco for $52 million, a number that factors out to nearly $297 per sf.

Holliday Fenoglio Fowler arranged the recent sale, which was facilitated with the help of $33.8 million in financing, also arranged by HFF. Jon Mikula, senior managing director, and associate director Michael Klein of the firm’s Florham Park, NJ office represented new owner Principal Real Estate in the financing transaction. The five-year loan package came from a life insurance company, which was not identified. Further details were not released.

“This deal is a sign that runs contrary to the perception of some of what is happening out there in the market,” Mikula tells GlobeSt.com. “This is a trophy asset, selling at a high watermark, financed by a life insurance company. The Parsippany class A office market is supply constrained and lacks large blocks of new space, and as a result, the property’s competitive set has seen ever-increasing rates since 2004.”

Located within the Center of Morris County office park near the intersection of Interstates 80 and 287, 200 Kimball Dr. was initially constructed on a spec basis in 2001 by Gale & Wentworth, now the Gale Real Estate Services subsidiary of Mack-Cali Realty Corp., and subsequently sold to Invesco in a deal unreported at the time. J.P. Morgan Investments was Gale’s partner in the original construction of the property.

Before the building was even fully completed, however, Novartis signed on for 143,000 sf with a long-term lease for the North American headquarters of its Novartis Consumer Health division. The law firm of Kelley Drye & Martin subsequently leased the remainder of the building’s space, and both tenants remain at the site with their long-term leases. Officials of Principal Real Estate Investors and Invesco could not be reached for comment.

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