In addition to paying $7.25 per share for the company's common stock, Lakewood, NJ-based Lightstone Group also assumes mortgage debt and preferred stock, making the deal worth $734 million. Although the company received slightly higher offers, Patterson notes the $7.25 per share is 68% higher than where Prime Group Realty Trust shares were trading in early 2003.
Lightstone Group principal and chairman David Lichtenstein indicates the Prime Group Realty Trust portfolio will not be the end of his company's investment in the Chicago market. He says Lightstone Group will look for additional office and industrial assets. Before the sale, Prime Group sold off its industrial portfolio to CenterPoint Properties Trust for $125 million.
Lichtenstein, Lightstone chief financial officer Michael Schurer and Lightstone senior vice president Bruno de Vinck also join the board of directors. In addition, George R. Whittemore, John M. Sabin and Shawn R. Tominus join the board as independent trustees.
Meanwhile, Prime Group Realty Trust chief financial officer Richard FitzPatrick has resigned while former board members Douglas Crocker, Ray D'Ardenne, Jacque Ducharme, Daniel Lupiani, Stephen Nardi and Christopher Nassetta have stepped down.
"We intend to continue operating the company as a Chicago-based company and to remain focused on providing excellent service to our existing tenants and to aggressively attract new tenants," Patterson says.
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