"An interest rate reduction of 680 basis points on a $75-million loan is meaningful to the company," says co-president and CFO Louis G. Conforti.
At the same time, the REIT has bought out its former joint venture partner in Dearborn Center, which has been renamed Bank One Corporate Center. Prime Group Realty Trust paid $9.2 million to Penny Beitler LLC.
"The Beitler buy-out allows us to solely control our largest asset, especially in terms of providing competitive leasing, or a prospective sale or joint venture," Conforti adds in a statement.
The 37-story building at 131 S. Dearborn St. is anchored by Bank One, but nearly 500,000 sf remains available.
The new mezzanine loan matures in January but can be extended with a half-point fee.
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