Wells Fargo files $29.6 million foreclosure on LR Regions Building

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LITTLE ROCK, Ark. (KTHV) -- Wells Fargo Bank has filled a foreclose notice on the Little Rock Regions Building.

NNN 400 Capital Center LLC, comprised of 37 identically named limited liability companies, purchased the 30-story building in downtown Little Rock for $32 million on August 18, 2006. According the filing in Pulaski Country Circuit Court, the maturity date on the note was September 1. 

The original monthly payment was $196,343.21. Wells Fargo noted that they have sent several notices of default, all of which were ignored. 

As of November 7, the balance of the loan was $29,612,459.95, which includes $1,202,411.71 in late fees, $508,742.12 in interest, and $223,782.12 in default interest. 

Starting November 8, the interest began accruing at a rate of $5,191.25 per day, and the the default interest began accruing at a rate of $3,340.03 a day. 

Wells Fargo has also requested that all rent payments collected past September 1 be returned.  The Little Rock Club and Arkansas Blue Cross and Blue Shield are among the companies renting space in the building. 

Per the loan agreement, Wells Fargo retains the right to sell the property in order to satisfy the outstanding loan balance.  

They have also requested to appoint a receiver to "protect, possess, control, manage, and operate" the property.  The receiver will also receive rent payments and manage the operating expenses. 

Wells Fargo has requested Shane Soefker with Avison Young in Memphis to be named the property's receiver. 

The first hearing has been scheduled for January, 12, 2017 before Judge Chris Piazza.


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