CHICAGO-A Toronto-based REIT is lending Prime Group Realty Trust $55 million in a deal that gives them part of any upside from a sale of the Citadel Center at 131 S. Dearborn St. IPC US REIT's Investment Holdings Canada Inc. will get a 12% annual return under the 4.5-year loan.
In addition, the IPC US REIT will get 10% of Prime Group Realty Trust's proceeds above $50 million if the 1.5-million-sf Citadel Center is sold after March 31. Since acquired by Lakewood, NJ-based Lightstone Group, Prime Group Realty Trust holds a 30% stake in the office building formerly known as Bank One Corporate Center.
IPC is the only Canadian REIT investing exclusively in US commercial real estate. It is using proceeds from the sale of a 780,000-sf retail portfolio for its loan and equity stake in the Prime Group Realty Trust portfolio, which totals 3.8 million sf. IPC also is expecting proceeds from its sale of the Bank of America building in San Francisco.
Anchored by Citadel Investment Group, the building at 131 S. Dearborn St. is 93% leased. Tenants also include two law firms, Seyfarth Shaw and Holland & Knight.
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