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CHICAGO-Prime Group Realty Trust took a 10,000-sf step toward reducing its sublease obligations it assumed when it lured Citadel Investment Group, LLC from 1 N. Wacker Dr. to its $355-million Dearborn Center project. However, the financially-troubled REIT still has more than 150,000 sf available at UBS Tower after signing a 10-year sublease with Chicago Analytic Capital Management, LLC.

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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