Nashville-based Health Care Realty Trust has acquired the Davis Brown Tower at 10th and Walnut streets in downtown Des Moines in a deed in lieu of foreclosure with a Ladco development arm.
The 13-story, $41 million structure was a critical part of downtown redevelopment efforts when it opened in July 2008. It also was one of the signature projects of developer Jon Garnaas.
Health Care Realty Trust, or investment entities it created, was involved in the financing of several Garnaas projects, often under the name HR of Iowa. Those projects focused on medical office clinics and included the Clive wellness campus.
In November 2011, Garnaas filed what was described as the largest individual bankruptcy filing in state history. The case is about to be resolved, with a trustee finding that claims totaling $30 million could be paid to unsecured creditors. However, after paying administrative costs, the estate will have less than $170,000 to pay bills. HR of Iowa is listed as an unsecured creditor in the bankruptcy case. However, it did not submit a claim, according to court documents. Click here for a related story.
Davis Brown Tower is named after on Greater Des Moines’ most storied law firms. Davis Brown Law Firm has its headquarters in the building. However, the firm was not involved in the financing of the structure, according to a news release.
Attorney Robert Douglas, who represented Garnaas' LB Properties X LLC said a $40 million first-lien mortgage held by HR of Iowa matured in January and could not be renegotiated. Loan and property tax payments were current, he said.