A private buyer has acquired 300 Kimball Drive from State Farm Insurance. The approximately 400,000-square-foot office building in Parsippany, N.J., changed hands for $66 million. At the time of sale, the building was 78 percent leased.
“The property was owned by a large insurance company that maintained it to a trophy quality level,” Kevin O’Hearn, HFF’s senior managing director, told Commercial Property Executive. “It also has a strong tenant roster with ample lease term and one of the best locations in the submarket.”
The asset, constructed in 2001, is part of a four-building, 850,000-square-foot office park called The Center of Morris County.
A changing landscape
State Farm had been the sole tenant until it started to phase out in 2013 and fully renovated the building to allow for multi-tenancy. Today, it is home to a tenant roster that includes FM Global, Fiserv, Langan Engineering and Western World Insurance.
The five-story building is LEED Silver certified and boasts a conference center, fitness center with locker rooms, a full-service cafeteria, an atrium lobby and its own walking trail. There’s also covered parking.
A one-time recipient of BOMA Building of the Year, the property is situated on 9.3 acres at the intersection of two interstate highways (80 and 287) and offers strong visibility along Interstate 80. It’s also part of one of the region’s top office parks.
According to O’Hearn, there was strong interest from private equity advisors and private individuals. “The property, originally occupied entirely by the seller, had been stabilized enough to be attractive to value add buyers that wanted a little vacancy left to achieve some upside,” he said. “The leasing market was also getting stronger for trophy/Class A product.”
HFF represented the seller in the transaction, while Transwestern Investment Group negotiated the deal on behalf of the buyer. Joining O’Hearn on the deal were HFF Senior Managing Director Jose Cruz, and Senior Directors Stephen Simonelli and Michael Oliver.
Last October, Transwestern relocated from 300 Kimball Drive, where it had occupied approximately 6,000 square feet since 2011.
Image courtesy of Transwestern