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GlobeSt.com UPDATE: Lightstone Closes Prime Group Buy

CHICAGO-Prime Group Realty Trust president and chief executive officer Jeffrey A. Patterson remains at his job after Lightstone Group, LLC closes its deal to buy the REIT for $7.25 per share.

By Mark Ruda | Updated on July 02, 2005

CHICAGO-Lightstone Group, LLC has closed on its purchase of Prime Group Realty Trust, a city and suburban office REIT with a 7.6-million-sf portfolio. President and chief executive officer Jeffrey A. Patterson and executive vice president and general counsel James F. Hoffman stay on in their posts, with Patterson also serving as trustee on a new board of directors.

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.

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