X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CLEVELAND, OH-Prime Group Realty Trust of Chicago is selling its 767,181-sf National City Center office property in Cleveland, OH to anchor tenant National City Corporation for $80 million.

The office and industrial REIT said Friday that the Cleveland-based bank holding company has completed its due diligence and one of its affiliates is obligated under a contract to acquire the asset. The gross contract price for the sale and lease termination fee from the bank is $80.0 million. The closing is expected to take place during the week of June 16, 2003.

Prime Group says the disposition of its only Cleveland asset illustrates its focus on its metropolitan Chicago portfolio, and by retiring a $64.7 million first mortgage loan and repaying additional mezzanine indebtedness, improves the company’s capital structure.

After retiring the loan on the building, Prime Group estimates it will net $15.8 million in proceeds from the transaction. Prime Group says it has allocated $8.1 million of the net proceeds to pay down a portion of its mezzanine debt with Fleet National Bank. The Company intends to use the remaining $7.7 million to pay down the Security Capital Preferred Growth loans in connection with the Company’s exercise of its right to extend the maturity dates of these loans until January 12, 2004.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.