The settlement appears to cost the REIT $22 million, as it says Friday the sale of the 874,742-sf building across the street from the Board of Trade will result in a $15-million write-down. The Central Loop asset, most recently renovated in 1984, is 58% leased, according to Prime Group Realty Trust.
Prime/Mansur Investment Partners, whose officials were not immediately available for comment, assumes a $42.3-million mortgage on 208 S. LaSalle St. from Capital Co. of America. The loan, which matures in 2013, carries a 7.79% interest rate.
Prime Group Realty Trust owns 23.1% of the joint venture for the 383,509-sf Thistle Landing, most recently 73.7% occupied. Wells Fargo has a $24.1-million mortgage on the five-year-old property, at 5.5%, but the loan matures in June. Like the deal for 208 S. LaSalle St., closing must take place by Dec. 15, the REIT says.
Prime/Mansur Investment Partners and Prime Group Realty Trust struck a deal last year at $6.70 per share for the REIT's stock. The REIT declared the deal dead in November, however, saying Prime/Mansur Investment Partners had failed to get acceptable financing, which the bidders disputed. Both sides sued in a Maryland court. In February, Lakewood, NJ-based Lightstone Group agreed to buy the company for $7.25 per share, making the deal worth $889 million.
Prime Group Realty Trust shares opened at $7.13 Friday.
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