Lightstone's best-known deal in this league was the 2003 purchase of Prime Retail, which it acquired for $115.5 million and the assumption of $510 million in debt. "David Lichtenstein's a turnaround artist and he's done pretty well with Prime Retail," a source familiar with the bid for Prime Group Realty tells GlobeSt.com. "He's accomplished at buying distressed entities and making something out of them."

Certainly Prime Group Realty fits the bill as something of a distressed entity. In 2002, major shareholders demanded that then-chairman Michael Reschke be given the boot because he allowed a default on $100 million in loans held by Vornado Realty Trust and Cadim Inc., with a subsequent drop in Prime Group stock of 40%. Later, the REIT saw one of its larger tenants in Downtown Chicago--Arthur Andersen--simply vanish, leaving enormous vacancies.

It isn't quite clear at this point, however, that Prime Group Realty is actually for sale. Until October 2004, former chairman Reschke and E. Barry Mansur were in serious contention to buy the REIT; in fact, a deal was made, contingent on Reschke and Mansur being able to secure adequate financing. In December, Prime Group said that the two hadn't fulfilled this requirement, and that the deal was off. The two suitors said that Prime Group was trying to back out of the deal in violation of its contract. The matter is now before a Maryland judge.