The office and industrial REIT said Friday that the Cleveland-based bank holding company has completed its due diligence and one of its affiliates is obligated under a contract to acquire the asset. The gross contract price for the sale and lease termination fee from the bank is $80.0 million. The closing is expected to take place during the week of June 16, 2003.

Prime Group says the disposition of its only Cleveland asset illustrates its focus on its metropolitan Chicago portfolio, and by retiring a $64.7 million first mortgage loan and repaying additional mezzanine indebtedness, improves the company's capital structure.

After retiring the loan on the building, Prime Group estimates it will net $15.8 million in proceeds from the transaction. Prime Group says it has allocated $8.1 million of the net proceeds to pay down a portion of its mezzanine debt with Fleet National Bank. The Company intends to use the remaining $7.7 million to pay down the Security Capital Preferred Growth loans in connection with the Company's exercise of its right to extend the maturity dates of these loans until January 12, 2004.