LAKEWOOD, NJ, JULY 8, 2005 –The Lightstone Group, one of the largest private real estate owners in the country, has announced the acquisition of Chicago-based REIT Prime Group Realty Trust for an estimated $889.4 million. The Lightstone Group will now own Prime Group Realty Trust’s 11 office buildings totaling 4.6 million square feet, a 120,000-square-foot industrial property, and 9.3 acres of developable land, in addition to three joint venture interests in office properties totaling 2.8 million square feet, all located primarily in the Chicago metropolitan area.
David Lichtenstein, chairman and principal of The Lightstone Group said, “Chicago: It’s our kind of town, and this is our kind of deal. It offers great pricing, great real estate, great upside. Who knows? With our luck, maybe Chicago will get a World Series winner this year.”
Angela Mirrizi-Olsen, chief investment officer of The Lightstone Group, added, “From the time that the merger agreement was signed on February 17 to the closing on July 1, it’s been a most worthwhile engagement due to the high level of professionalism and talent on both sides of the table. It was a smooth collaboration of efforts put forth by Prime Group Realty Trust and The Lightstone Group, which in the end, will result in a very successful marriage.”
Lightstone was represented by the law firm Herrick, Feinstein LLP. Wachovia Securities acted as financial advisor to Prime Group’s Board of Trustees, and Winston & Strawn LLP provided legal advice to Prime Group Realty Trust.
Louis Goldberg of Herrick, Feinstein commented, “As a result of this transaction, The Lightstone Group now owns all the common shares and partnership units of Prime Group Realty Trust. We are pleased to have been able to successfully navigate the real estate, tax, corporate, and securities law hurdles involved in this transaction to bring it to a successful completion. Working together with the world-class team of professionals at Lightstone and Prime Group Realty helped enable us to complete this complex transaction in just over four months—right on schedule.”
The Lightstone Group acquired Prime Group’s sister company, Prime Retail, Inc., in December 2003 for $626.5 million and has since successfully repositioned the company as one of the leading retail outlet companies in the industry.
The Lightstone Group has a highly successful track record of buying companies and portfolios, including Park Avenue Bank in 2004.
