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ROLLING MEADOWS, IL-The three-building, 841,513-sf Continental Towers has been refinanced with Citicorp USA Inc. for $58 million in a deal that affects other Prime Group Realty Trust holdings and releases the REIT from a tax indemnity agreement. Interest on the new two-year loan is tied to the Eurodollar rate but capped at 9.09%.
Meanwhile, Prime Group Realty Trust has until May to get consent from Greenwich Capital, which holds a mortgage of about $65 million on 180 N. LaSalle St., and pledge its interest in that building. If not, the REIT must pay down the Citicorp USA mortgage by $14 million.
While a subsidiary, PGRT Equity LLC will profit through a junior mortgage against Continental Towers, controlling interest in the three buildings has shifted, according to a Securities and Exchange Commission filing. Yochanan Danziger becomes general partner, controlling a 64% interest in the property.
Subsidiaries of the REIT also transferred ownership interests in 77 W. Wacker Dr., the Atrium at 280 Shuman Blvd in Naperville, and Jorie Plaza at 800-10 Jorie Blvd. in Oak Brook as part of the new loan.
Lightstone Group principal David Lichtenstein is guaranteeing principal and interest on the Citicorp loan as well as operating expenses for Continental Towers, 77 W. Wacker Dr., the Atrium and Jorie Plaza. Lakewood, NJ-based Lightstone Group is the parent company of Prime Group Realty Trust, which will manage Continental Towers through 2012.
Prime Group Realty Trust also paid a former limited partner in Continental Towers, Roland E. Casati, $4.2 million to cover tax liabilities.
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