Des Moines-based Principal Real Estate Investors funded the loan for the Atlanta-based Wells Real Estate Funds, which bought the high rise at 1401 McKinney St. in late December 2005. Wells REIT II paid $166 million plus closing costs for the building, positioned on 1.43 acres. According to its SEC filing, the acquisition was funded with net proceeds from an ongoing public offering and assumption of a $90-million, fixed-rate loan through Irving, TX-based Archon Financial. The loan, carrying a 5% annual interest rate, was set to mature Oct. 1. Under the loan terms, Wells REIT was able to retire the debt after June 1 without a prepayment.
Holliday Fenoglio Fowler LP's executive managing director Scott Galloway and managing director Susan Hill arranged the financing. An interview wasn't available before deadline, but Hill says in the press release that Principal presented "favorable terms" and provided "additional flexibility" for the owner.
The 27-story tower and eight-story, 1,237-space parking garage were completed in 2002. Its lead tenants are Ernst & Young LLC, Halliburton and McKinsey & Co. Stream Realty Partners' Brad Fricks and Paul Coonrod lease the Downtown trophy office building.
© 2025 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.
