Wells Fargo Bank N.A. has filed a foreclosure lawsuit on the Regions Bank building at 400 W. Capitol Ave. in Little Rock, the Arkansas Democrat-Gazette reported today.
Wells Fargo's lawsuit targets 37 limited liability corporations with ownership stakes in the 30-story 600,000-SF building. The lawsuit alleges default on the $32 million loan associated with the purchase of the building in August 2006.
The full purchase price of the building, as reported in 2006 by Arkansas Business, was $37.2 million.
According to Arkansas Business news partner THV 11 News, the lawsuit says that:
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 Sept. 1 be returned.
The lawsuit also says that Wells Fargo has sent several notices of default, all of which were ignored. The bank is requesting the court appoint a receiver, LNR Partners LLC of Florida, "to protect, possess, control, manage, and operate the Property …"