Wells Fargo Capitol Center (Photo: GlobeSt.com) Wells Fargo Capitol Center

Real estate is a kissing cousin of the life insurance and annuity sectors. Life insurers invest some of their general account cash in real estate, mortgages and mortgage-backed securities. Customers use the income from permanent life and annuity products to pay for housing.

Here’s the fourth of five GlobeSt.com articles about intersections between your universe and the real estate universe that we’ll be running this week. It gives you a peek at the kinds of real estate-related assets the carriers are putting in their portfolios now.

Preferred Apartment Communities, a real estate investment trust (REIT), has used a $114.4 million loan from New York Life Insurance Co. to acquire the Wells Fargo Capitol Center in Raleigh, North Carolina.

The purchase price was not disclosed, but the loan was a non-recourse first mortgage loan.

(Related: MetLife to Help State Street Affiliates Make Commercial Mortgage Loans)

Wells Fargo Capitol Center is a 559,591-square-foot, 29-story office building. The tower is currently leased to a mix of tenants, including tenants in the financial services, law, technology and government sectors.

This purchase increases the size of Preferred Apartment Communities’ office portfolio to six assets, and a total of about 2.1 million square feet. The REIT acquired the office building through its wholly owned subsidiary, Preferred Office Properties, LLC.

Boone DuPree, the chief executive officer of Preferred Office Properties, said in a statement that the company looks for opportunities where both the property and the market are poised for growth.

Preferred Office Properties hopes the acquisition is the first of many in Raleigh and in North Carolina, DuPree added.

In 2016, U.S. insurers had invested about 10% of their general account assets in commercial mortgage loans, according to the American Council of Life Insurers.

— Read Prudential’s Real Estate Finance Arm Describes Its Lending Targetson ThinkAdvisor.

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