Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Although the debts may be passed on to new owners, Prime Group Realty Trust is working on refinancing two of its Downtown office assets. The REIT has a $157.5-million loan against 77 W. Wacker Dr., which it owns in partnership with the Ohio Teachers Retirement System, and a $60-million loan against 180 N. LaSalle St.

Both loans come due next year. Westdeutsche Immobilien Bank’s loan on the 950,000-sf 77 W. Wacker Dr. matures next September, according to the company’s most recent earnings report. Greenwich Capital’s loan on the 750,000-sf 180 N. LaSalle St., which has a current interest rate of 5.13%, is up in January.

Prime Group Realty Trust’s entire office and industrial portfolio has been on the market for a year, but the only deals have been single assets in markets the REIT intended to leave anyway. However, the vultures are no longer circling the company, says Prime Group Realty Trust co-president Louis Conforti, who also reported on the company’s refinancing efforts during a recent earnings conference call.

Occupancy in the company’s Downtown office buildings improved to 73.9%, the low number largely the result of its former top tenant, Arthur Andersen, vacating 33 W. Monroe St. and IBM Plaza at 330 N. Wabash Ave. However, Conforti says Prime Group Realty Trust has been able to market itself better as its financial picture has cleared up and leasing activity in other buildings has progressed.

“No one’s going to beat up on our shareholders, common and preferred, and take advantage of our company,” Conforti says.

Nearly half of the company’s tenants fall into three categories—-law firms, banks and business services. However, Conforti says the tenant roster is diversified, adding the company is now focused on Chicago, considered to be the most diversified market in the US.

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.