"You can't improve upon AT&T's credit and name," AnitaPallardy, Prime Group Realty SVP, tells GlobeSt.com. "DeStefano isexpanding globally and they're a good, professional firm. Thesetenants join other internationally-recognized tenants in thebuilding, like Perkins+Will and Thornton Tomasetti."

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Mark Keebler and Brad Serot, with CB Richard Ellis, representedDeStefano + Partners in the lease. George Kotrogiannis and KurtKittner, with Jones Lang LaSalle, represented AT&T Corp. Askinglease rates range from $18 to $28 triple net in the 1.1-million-sfoffice building. It is now 90% leased with about 118,000 sf ofoffice space remaining vacant.

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The building's occupancy rate will take a serious hit in 2010,when Jenner & Block LLP vacates the tower rise portion -371,944 sf in floors 37 through 47, or about a third of thebuilding. "They're moving to a building directly to the west,"Pallardy says. "This creates a phenomenal new anchor tenantopportunity in some of the best space in Chicago." Pallardy saysPrime Group has already seen substantial interest in the space.

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Prime Group has also recently refinanced the building. "Knowingwe're going to be losing our anchor tenant, we have money in thebank today and in light of credit markets, that puts us in astronger position financially than some of our competitors,"Pallardy says.

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The building, completed in 1971 as Mies van der Rohe's largestand last building designed in the country, was recently givenlandmark status by the city of Chicago. This designation providestenants reductions in real estate tax assessments. Tenants are alsoprovided shuttle service to and from Metra train stations, areduced postage program, a 900-stall parking facility and lobbykiosk offering food and coffee.

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Earlier this year, Prime Group vertically subdivided thebuilding, selling floors two through 13 to investors who plan todevelop a hotel in the space, which is expected to open in 2010."It completely is a grand-slam relative to our redevelopmentefforts on the building," Pallardy says. "It's going to be boutiqueand the hotel market is still hot and will remain that way even inlight of the economy, especially with Chicago chasing theOlympics."

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