Now owning 1.04 million shares for a 6.6% stake in the REIT,Northland Capital Investors, LLC and executive officer Lawrence R.Gottesdiener more than doubled their position in the past twomonths by spending $2.68 million for 608,300 shares, according to areport filed with the Securities and Exchange Commission.

While that gives Northland Capital Investors a stake little morethan one-third the size of K Capital Partners, the REIT's largestinvestor, the smaller shareholder say they have given arecapitalization proposal to Prime Group Realty Trust's board oftrustees. Although the specifics are not disclosed in the SECfiling, Northland Capital Investors says the plan could give theREIT more breathing room, "without having to sell its assets underduress."

Although Northland Capital Investors stresses in the filing thatno deal has been struck, the proposal could include seniormanagement of Prime Group Realty Trust as well as trustees. Inaddition to acting chairman Stephen J. Nardi, the board includesformer Equity Residential Properties Trust chief executive officerDouglas Crocker II; Julien J. Studley, Inc. president Jacque M.Ducharme; Host Marriott Corp. president and chief executive officerChristopher J. Nassetta and former Illinois governor James R.Thompson. Former Prime Group Realty Trust chairman Michael W.Reschke also remains on the board despite his resignation inApril.

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