Closing is scheduled for April 16.
Although Prime Group Realty Trust will pay off a $59.25-million first mortgage on the property held by DGZ Deka Bank, it is negotiating with Fleet National Bank, which holds an $11.8-million mezzanine loan on the property, on substituting another asset as collateral. While the first mortgage carried a floating interest rate most recently at 2.67%, Prime Group Realty Trust has been paying 8.17% interest to Fleet National Bank on the loan scheduled to mature in November.
Meanwhile, Prime Group Realty Trust will put $19.4 million aside in a leasing reserve escrow account at closing, according to the company 8-K filing with the Securities and Exchange Commission in connection with the sale.
The REIT most recently was asking $15 per sf on a net lease basis for space at 33 W. Monroe St., which was built in 1980. Occupancy fell to 21% at the beginning of 2004, according to the company's most recent supplemental report.
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