Prime Group Realty Trust Close to Selling 8-Mil-SF Suburban Office, Industrial Portfolio

CHICAGO-Prime Group Realty Trust is negotiating a contract to sell nearly 8 million sf of suburban office and industrial properties, which represent about 40% of the REIT’s net operating income, says Chairman of the Board Michael W. Reschke. A deal could be announced some time in April.

The move was one of several options, including joint ventures and mergers, being explored by the board and its investment bankers in an attempt to increase shareholder value. The largest property in the package would be the three-building, 925,822-sf Continental Towers in Rolling Meadows, adjacent to the Northwest Tollway.

If the suburban office and industrial portfolio sale goes through, the REIT could remain a going concern with its 5.5-million-sf Central Business District office portfolio and developments, Reschke says, which include the $350-million Dearborn Center in the Loop here. That project is 63% pre-leased 18 months before completion, he adds.