CHICAGO-Prime Group Realty Trust shareholders have overwhelmingly approved the sale of the REIT to Lakewood, NJ-based Lightstone Group, LLC, with owners of 79% of the company’s outstanding shares voting in favor of the deal Tuesday. The sale, at $7.25 per share, is expected to close Thursday, giving Lightstone Group a 7.6-million-sf city and suburban office portfolio.

While owners of common stock will be cashed out, Prime Group Realty Trust’s preferred B stock will remain, with six quarters of accrued dividends being paid. The vote in favor of the sale was expected, as four entities as well as the company’s executives and board of directors own 60% of the common shares. In addition to paying $172 million for the common stock, Lightstone Group is assuming $426 million in mortgage debt as well as the debt represented by the four million preferred shares.

Lightstone Group acquires Prime Group Realty Trust’s joint venture interests in the 1.5-million-sf Bank One Center at 131 S. Dearborn St. and the one-million-sf R.R. Donnelley Building at 77 W. Wacker Dr. The REIT owns the 1.5-million-sf IBM Plaza at 330 N. Wabash Ave. outright. In the suburbs, Prime Group Realty Trust’s most prominent asset is the three-building, 841,000-sf Continental Towers complex along the Northwest Tollway in Rolling Meadows.

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