In addition, Prime Group Realty Trust is using $71.2 million in net proceeds to repay debt and set $1.4 million aside for working capital. The joint venture is earmarking another $22.5 million to pay for tenant improvements that may be needed to lease up about 500,000 sf of office space.
Prime Group Realty Trust will continue to be in charge of leasing and managing the property. Besides a management agreement with the joint venture, the REIT is in line to get another $9.8 million from Estein & Associates USA Ltd. when another 40,000 sf of Bank One space is leased.
The deal was announced in early September and was scheduled to close before Oct. 15.
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