While 275,000 sf of the former R.R. Donnelly Co. printing plant remains vacant shell space, the rest of the eight-story building was most recently 96% occupied. Built from 1912 through 1928, the Chicago landmark was renovated in 1999 with riser space, exterior conduit and redundant power supply. Menlo Park, CA-based Digital Realty Trust expects the deal to result in a 9% capitalization rate.
The sale is part of El Paso Corp.'s strategy of trimming company debt to $15 billion by the end of 2005. El Paso Corp. could earn another $20 million if it efforts to get a lower property tax rate are successful by the end of 2006.
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