Des Moines-based Principal Real Estate Investors funded the loanfor the Atlanta-based Wells Real Estate Funds, which bought thehigh rise at 1401 McKinney St. in late December 2005. Wells REIT IIpaid $166 million plus closing costs for the building, positionedon 1.43 acres. According to its SEC filing, the acquisition wasfunded with net proceeds from an ongoing public offering andassumption of a $90-million, fixed-rate loan through Irving,TX-based Archon Financial. The loan, carrying a 5% annual interestrate, was set to mature Oct. 1. Under the loan terms, Wells REITwas able to retire the debt after June 1 without a prepayment.

Holliday Fenoglio Fowler LP's executive managing director ScottGalloway and managing director Susan Hill arranged the financing.An interview wasn't available before deadline, but Hill says in thepress release that Principal presented "favorable terms" andprovided "additional flexibility" for the owner.

The 27-story tower and eight-story, 1,237-space parking garagewere completed in 2002. Its lead tenants are Ernst & Young LLC,Halliburton and McKinsey & Co. Stream Realty Partners' BradFricks and Paul Coonrod lease the Downtown trophy officebuilding.