Preferred Apartment Communities Buys NC Office Tower

By Timea Papp

Wells Fargo Capitol Center

Preferred Apartment Communities has acquired Wells Fargo Capitol Center, a roughly 560,000-square-foot, Class A office tower in downtown Raleigh, N.C. The buyer completed the purchase through one of its subsidiaries, Preferred Office Properties. According to Yardi Matrix data, HighBrook Investors was the seller.

New York Life Insurance Co. facilitated the transaction with roughly $114.4 million in acquisition financing. The non-recourse mortgage bears a 10-year term, a 4.27 percent fixed-rate per year and amortizes beginning in year three based on a 30-year schedule.

Notable tenancy 

Located at 150 Fayetteville St., in the city’s central business district, Wells Fargo Capital Center was completed in 1990 and underwent an expansive renovation program in 2002. The 29-story building serves as the regional headquarters of Wells Fargo Bank and features a conference facility, fitness center and a private dining club, City Club Raleigh. Other tenants include Deloitte, Tharrington Smith, Subway and AT&T.

“Wells Fargo Capitol Center presents a unique blend of stability from its existing rent roll and upside potential from a strong local market and the opportunity through repositioning to once again be the premier downtown Raleigh business address,” said Boone DuPree, chief executive officer of Preferred Office Properties, in prepared remarks.

The deal marks Preferred Office Properties’ first North Carolina acquisition. Earlier this year, PAC bought Armour Yards, a development containing four recently converted office buildings in Atlanta’s Buckhead submarket.

Image courtesy of Yardi Matrix