180 N. LaSalle Draws New Interest

CHICAGO-While the future of the REIT’s management and ownership is up in the air, Prime Group Realty Trust may be lightening its Loop office portfolio by 770,191 sf. Prime Group’s office tower at 180 N. LaSalle St., renovated by the REIT, is drawing interest from potential buyers, Chairman Michael W. Reschke says, though none of their most recent offers are exciting.

“We recently received our second round of bids for 180 N. LaSalle,” Reschke reports. “These bids are currently under negotiation, and the company has not concluded if any are acceptable. There’s no doubt the effects of Sept. 11 has had a significant dampening effect on the depth of buyers’ interest. Many institutional buyers who were quite active in the market are, quite frankly, sitting on the sidelines. And no one is able to predict how long this malaise of buyer demand will persist.”

The largest Downtown office sale to close after Sept. 11 was the $239-million sale of 181 W. Madison St., at $255 per sf. Los Angeles-based Davis Cos. followed through on the deal in spite of a Sept.11 closing’s delay because of the terrorist attacks on the US. Before that, 225 W. Washington St. sold at $185 per sf, which would equate to $142.5 million for Prime Group’s class A building.