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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.

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