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CHICAGO-Bank One and IBM have something in common with Andersen. The former accounting giant was Prime Group Realty Trust’s No. 1 tenant before its role in the Enron scandal resulted in bankruptcy, and 80% vacancy of its headquarters building that was sold earlier this year.

Neither Bank One nor IBM are in Andersen’s financial predicament, but they nonetheless weigh heavily on the minds of Prime Group Realty Trust officials. Bank One pays $14 million a year for space at 131 S. Dearborn St., while IBM is the third-largest tenant in Prime Group Realty Trust’s entire portfolio, paying $9.3 million a year in rent, or 7.8% of the REIT’s office rental income.

Now owned in a joint venture, the 1.5-million-sf Bank One Corporate Center is 68.5% occupied, with the namesake tenant holding the majority of the space. However, Bank One is merging with JPMorgan and has put all of the 1.3 million sf of Downtown space up for sublease, including Bank One Corporate Center, observed Prime Group Realty Trust chairman Stephen J. Nardi. “In my opinion, I don’t believe they’ll vacate all of that space in Chicago,” he said during the company’s recent earnings conference call.

CB Richard Ellis is marketing up to 378,000 sf of upper-floor space at Bank One Plaza at 2 S. Dearborn St. at $19 per sf.

Nardi is confident negotiations on a renewal beyond 2006 will keep IBM at 330 N. Wabash Ave. “I can’t really give you my feelings, but I do think the IBM Plaza is an important identity to them and we see no reason for them not to renew,” Nardi said.

Lehman Brothers Bank has two mortgages on IBM Plaza, a $130.2-million variable rate first mortgage most recently at 3.70% and a $64.8-million mezzanine loan at 7.70%.

Fleet National Bank, which when an $11.6-million mezzanine loan on 33 W. Monroe St. at 8.09% through November, agreed to transfer that debt to 180 N. LaSalle St., Nardi reported. Greenwich Capital is in the senior position with its mortgage, with the principal just under $67 million, at 5.43%.

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