<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">
<DIV style="font-size: 10pt">
<DIV
style="font-size: 1pt; width: 100%; border-bottom: black 2pt solid">&nbsp;</DIV>
<DIV
style="font-size: 1pt; width: 100%; border-bottom: black 1pt solid">&nbsp;</DIV>

<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): December 31, 2008</B>

<P style="font-size: 24pt" align="center"><B>PRIME GROUP REALTY
TRUST<BR>
</B><FONT style="font-size: 10pt">(Exact name of registrant as
specified in its charter) </FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>MARYLAND</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>1-13589</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>36-4173047</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>77 West Wacker Drive, Suite
3900, Chicago, Illinois<BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>60601</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(312) 917-1300.</B>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="30%" border="0">

 <TR>
  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>NOT
APPLICABLE<BR>
</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<DIV
style="margin-top: 10pt; font-size: 1pt; width: 100%; border-bottom: black 1pt solid">&nbsp;</DIV>
<DIV
style="font-size: 1pt; width: 100%; border-bottom: black 2pt solid">&nbsp;</DIV>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="justify"><B>Item&nbsp;1.01 Entry into a
Material Definitive Agreement.</B>

<P style="font-size: 10pt" align="justify">Prime Group Realty Trust (the
&#8220;<U>Company</U>&#8221;) issued a Press Release today disclosing that on
December&nbsp;31, 2008, its wholly-owned qualified REIT subsidiary PGRT ESH,
Inc. (&#8220;<U>Borrower</U>&#8221;), entered into a Second Amendment to
Amended and Restated Loan Agreement (the &#8220;<U>Amendment</U>&#8221;)
modifying various terms of a loan from Citicorp USA, Inc. in the original
principal amount of $120.0&nbsp;million. The loan currently has an outstanding
principal amount of $81.5&nbsp;million. The loan is non-recourse to Borrower,
the Company and its subsidiaries and is secured by, among other things, a
pledge of Borrower&#8217;s membership interest in BHAC Capital IV, L.L.C., an
entity that owns 100% of Extended Stay Hotels, Inc. As previously disclosed,
the loan is guaranteed by affiliates of our parent companies (the
&#8220;<U>Guarantors</U>&#8221;).

<P style="font-size: 10pt" align="justify">Pursuant to the Amendment, the
principal repayment schedule is now as follows: (i) $41.0&nbsp;million is due
on or before January&nbsp;30, 2009, (ii) $20.0&nbsp;million is due on
March&nbsp;31, 2009, (iii)&nbsp;the balance of the loan is due on June&nbsp;15,
2009 or earlier in the event of the occurrence of certain asset sales of the
Borrower or the Guarantors or its affiliates; and (iv)&nbsp;a $1.0&nbsp;million
fee is due upon the loan repayment or maturity. It is currently anticipated
that all or a portion of these required repayments will be funded by affiliates
of the Guarantors, although there can be no assurances that this will be the
case. In addition, certain minimum payments are required which will be applied
to the foregoing repayment schedule if certain asset sales of Guarantor&#8217;s
and Borrower&#8217;s affiliates are consummated or certain other events occur,
all as more fully set forth in the amended loan documents.

<P style="font-size: 10pt" align="justify"><B>Item&nbsp;5.02 Departure of
Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers</B>

<P style="font-size: 10pt; text-indent: 3%" align="justify">On
December&nbsp;31, 2008, we entered into amendments to the employment agreements
dated as of May&nbsp;31, 2005 with Jeffrey A. Patterson, our President and
Chief Executive Officer, and James F. Hoffman, our Senior&nbsp;Executive Vice
President, General Counsel and Secretary (the &#8220;<U>Executives</U>&#8221;).
The amendments were entered into solely to make the necessary changes to the
employment agreements in order to comply with the terms of the recently adopted
Section 409A of the Internal Revenue Code of 1986, as amended (the
&#8220;<U>Code</U>&#8221;). The transition period for Code Section 409A ended
on December&nbsp;31, 2008 and it was necessary for the two amendments to be
finalized by the end of the transition period.

<P style="font-size: 10pt; text-indent: 2%" align="justify">The revisions
generally add additional Code imposed obligations on the part of the Executives
such as adding required notice and cure periods benefiting the Company and
limiting the events for which the Executives can terminate the agreements for
&#8220;good reason&#8221;. The modifications include: (i)&nbsp;requiring that
prior to terminating the employment agreements because of a default by the
Company, the Executives must first provide written notice to the Company
specifying in reasonable detail the nature of the defaults within 90&nbsp;days
after the initial existence of such defaults and that the Company shall have
30&nbsp;days to cure such default, and (ii)&nbsp;eliminating the right of the
Executives to unilaterally terminate the Agreement upon the occurrence of a
change of control of the Company. The two amendments do not modify the terms of
the Company&#8217;s previously disclosed retention and severance program.

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="justify"><B>Item&nbsp;8.01 Other Events.</B>

<P style="font-size: 10pt" align="justify">Prime Group Realty Trust (the
&#8220;Company&#8221;) issued a Press Release today disclosing that on
January&nbsp;7, 2009, the Company&#8217;s Board of Trustees declared and set
apart for payment a quarterly dividend on its Series
&#8220;B&#8221; Preferred Shares of $0.5625 per share for the fourth quarter of
2008 dividend period. The quarterly dividend has a record date of
January&nbsp;19, 2009 and a payment date of January&nbsp;30, 2009.

<P style="font-size: 10pt" align="justify">This Form 8-K filing contains
certain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that reflect management&#8217;s current views
with respect to future events and financial performance. The words
&#8220;believes&#8221;, &#8220;expects&#8221;, &#8220;anticipates&#8221;,
&#8220;estimates&#8221;, and similar words or expressions are generally
intended to identify forward-looking statements. Actual results may differ
materially from those expected because of various risks and uncertainties,
including, but not limited to, changes in general economic conditions, adverse
changes in real estate markets as well as other risks and uncertainties
included from time to time in the Company&#8217;s filings with the Securities
and Exchange Commission.

<P style="font-size: 10pt" align="justify"><B>Item&nbsp;9.01 Financial
Statements and Exhibits</B>

<P style="font-size: 10pt" align="justify">(a)&nbsp;Financial Statements

<P style="font-size: 10pt" align="justify">None

<P style="font-size: 10pt" align="justify">(d)&nbsp;Exhibits.
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="8%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="87%">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap align="left"><B>Exhibit
No.</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap
align="center"><B>Description</B></TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">99.1 </DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Press Release of Prime Group Realty Trust dated
January&nbsp;7, 2009.</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV
style="margin-left: 0.25in; width: 7.2in; font-family: 'Times New Roman',Times,serif">

<P style="font-size: 10pt" align="center"><B>SIGNATURE</B>

<P style="font-size: 10pt; text-indent: 4%" align="justify">Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">

<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="50%">&nbsp;</TD>
  <TD width="4%">&nbsp;</TD>
  <TD width="46%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->

<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="top">&nbsp;</TD>
  <TD colspan="2" valign="top" align="left">PRIME GROUP REALTY TRUST</TD>
 </TR>

<TR><TD>&nbsp;</TD></TR>

 <TR valign="bottom">
  <TD valign="top">&nbsp;</TD>
  <TD align="left">By: </TD>
  <TD style="border-bottom: #000000 1px solid" valign="top" align="left">/s/ Jeffrey A. Patterson</TD>
 </TR>

 <TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Jeffrey A. Patterson</TD>
 </TR>

 <TR valign="bottom">
  <TD valign="top">Dated: January&nbsp;7, 2009</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">President and Chief Executive Officer</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>






<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>

<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release of Prime Group Realty Trust dated
January&nbsp;7, 2009.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "c79250e8vk.htm", "description": "FORM 8-K", "secsgml_size_bytes": 14324}]
{"company-data": {"conformed-name": "PRIME GROUP REALTY TRUST", "cik": "0001042798", "assigned-sic": "6798", "irs-number": "364173047", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-13589", "film-number": "09513727"}, "business-address": {"street1": "77 WEST WACKER DR", "street2": "STE 3900", "city": "CHICAGO", "state": "IL", "zip": "60601", "phone": "3129171300"}, "mail-address": {"street1": "77 WEST WACKER DRIVE", "street2": "SUITE 3900", "city": "CHICAGO", "state": "IL", "zip": "60601"}}
Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): December 31, 2008
PRIME GROUP REALTY
TRUST
(Exact name of registrant as
specified in its charter)
MARYLAND
1-13589
36-4173047
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
77 West Wacker Drive, Suite
3900, Chicago, Illinois
60601
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number,
including area code:
(312) 917-1300.
NOT
APPLICABLE
(Former name or former address if changed since last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a
Material Definitive Agreement.
Prime Group Realty Trust (the
"
Company
") issued a Press Release today disclosing that on
December 31, 2008, its wholly-owned qualified REIT subsidiary PGRT ESH,
Inc. ("
Borrower
"), entered into a Second Amendment to
Amended and Restated Loan Agreement (the "
Amendment
")
modifying various terms of a loan from Citicorp USA, Inc. in the original
principal amount of $120.0 million. The loan currently has an outstanding
principal amount of $81.5 million. The loan is non-recourse to Borrower,
the Company and its subsidiaries and is secured by, among other things, a
pledge of Borrower's membership interest in BHAC Capital IV, L.L.C., an
entity that owns 100% of Extended Stay Hotels, Inc. As previously disclosed,
the loan is guaranteed by affiliates of our parent companies (the
"
Guarantors
").
Pursuant to the Amendment, the
principal repayment schedule is now as follows: (i) $41.0 million is due
on or before January 30, 2009, (ii) $20.0 million is due on
March 31, 2009, (iii) the balance of the loan is due on June 15,
2009 or earlier in the event of the occurrence of certain asset sales of the
Borrower or the Guarantors or its affiliates; and (iv) a $1.0 million
fee is due upon the loan repayment or maturity. It is currently anticipated
that all or a portion of these required repayments will be funded by affiliates
of the Guarantors, although there can be no assurances that this will be the
case. In addition, certain minimum payments are required which will be applied
to the foregoing repayment schedule if certain asset sales of Guarantor's
and Borrower's affiliates are consummated or certain other events occur,
all as more fully set forth in the amended loan documents.
Item 5.02 Departure of
Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers
On
December 31, 2008, we entered into amendments to the employment agreements
dated as of May 31, 2005 with Jeffrey A. Patterson, our President and
Chief Executive Officer, and James F. Hoffman, our Senior Executive Vice
President, General Counsel and Secretary (the "
Executives
").
The amendments were entered into solely to make the necessary changes to the
employment agreements in order to comply with the terms of the recently adopted
Section 409A of the Internal Revenue Code of 1986, as amended (the
"
Code
"). The transition period for Code Section 409A ended
on December 31, 2008 and it was necessary for the two amendments to be
finalized by the end of the transition period.
The revisions
generally add additional Code imposed obligations on the part of the Executives
such as adding required notice and cure periods benefiting the Company and
limiting the events for which the Executives can terminate the agreements for
"good reason". The modifications include: (i) requiring that
prior to terminating the employment agreements because of a default by the
Company, the Executives must first provide written notice to the Company
specifying in reasonable detail the nature of the defaults within 90 days
after the initial existence of such defaults and that the Company shall have
30 days to cure such default, and (ii) eliminating the right of the
Executives to unilaterally terminate the Agreement upon the occurrence of a
change of control of the Company. The two amendments do not modify the terms of
the Company's previously disclosed retention and severance program.
Item 8.01 Other Events.
Prime Group Realty Trust (the
"Company") issued a Press Release today disclosing that on
January 7, 2009, the Company's Board of Trustees declared and set
apart for payment a quarterly dividend on its Series
"B" Preferred Shares of $0.5625 per share for the fourth quarter of
2008 dividend period. The quarterly dividend has a record date of
January 19, 2009 and a payment date of January 30, 2009.
This Form 8-K filing contains
certain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that reflect management's current views
with respect to future events and financial performance. The words
"believes", "expects", "anticipates",
"estimates", and similar words or expressions are generally
intended to identify forward-looking statements. Actual results may differ
materially from those expected because of various risks and uncertainties,
including, but not limited to, changes in general economic conditions, adverse
changes in real estate markets as well as other risks and uncertainties
included from time to time in the Company's filings with the Securities
and Exchange Commission.
Item 9.01 Financial
Statements and Exhibits
(a) Financial Statements
None
(d) Exhibits.
Exhibit
No.
Description
99.1
Press Release of Prime Group Realty Trust dated
January 7, 2009.
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
PRIME GROUP REALTY TRUST
By:
/s/ Jeffrey A. Patterson
Jeffrey A. Patterson
Dated: January 7, 2009
President and Chief Executive Officer
EXHIBIT INDEX
Exhibit No.
Description
99.1
Press Release of Prime Group Realty Trust dated
January 7, 2009.