Citadel Investment Group leased 206,000 sf at the 1.5-million-sf Dearborn Center, which is 63% pre-leased, with Bank One the anchor tenant at more than 600,000 sf. However, the company already had a deal for 161,488 sf at the joint venture built by The John Buck Co. and Lend Lease. Prime Group Realty Trust assumed that deal, at a cost of $82 million over 10.5 years.
While terms were not disclosed, Prime Group's break-even on 10,000 sf would be just under $5 million for the 10-year term.
"We intend to be aggressive with prospective subtenants in order to mitigate this exposure," says co-president and chief investment officer Jeffrey A. Patterson. "Chicago Analytic represents the first step toward reducing this obligation."
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