Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CLEVELAND-Prime Group Realty Trust expects to close this week on an $80-million deal to sell its 767,180-sf Downtown Cleveland office building to the main tenant, National City Corp. The deal not only helps the REIT clear some debt off its books, it also eliminates from the portfolio its largest office asset outside the Chicago market.

National City Center has a five-year, $64.7-million first mortgage at 4.40% from Corus Bank that will be paid off at closing. Prime Group Realty Trust will use another $8.1 million to pay down mezzanine loans with Fleet National Bank, with another $7.7 million earmarked for Security Capital Preferred Growth. National City Center was one of three properties used as collateral on a $20-million loan at 8.34%. Security Capital holds nearly $46 million of mezzanine loans.

Prime Group Realty Trust says an affiliate of National City Corp. has completed its due diligence, allowing the deal to proceed to the closing table.

Built in 1980, Prime Group Realty Trust has been collecting $15.88 per sf at the fully-occupied National City Center. National City Bank has occupied 567,790 sf there, making it Prime Group Realty Trust’s largest tenant in terms of space outside of Bank One. However, at least seven Chicago tenants pay the REIT more in rent.

Prime Group Realty Trust’s only other office building outside Chicago is the 386,040-sf Thistle Landing in suburban Phoenix.

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?


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.