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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<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): October 15, 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>

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

<P style="font-size: 10pt" align="left"><B>ITEM 1.01. Entry Into Material
Definitive Agreement.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">On September&nbsp;9,
2008, Prime Group Realty Trust (the &#8220;<U>Company</U>&#8221;) filed a
Current Report on Form 8-K disclosing that on September&nbsp;3, 2008, Younan
Properties, Inc. (&#8220;<U>Purchaser</U>&#8221;) became obligated to purchase
180 North LaSalle Street, Chicago, Illinois (the
&#8220;<U>Property</U>&#8221;), from the subsidiary of the Company
(&#8220;<U>Seller</U>&#8221;) that owns the Property.

<P style="font-size: 10pt; text-indent: 4%" align="left">On October&nbsp;21,
2008, the Company issued a press release announcing that on
October&nbsp;15,&nbsp;2008, the Purchaser and Seller amended the purchase and
sale agreement (the &#8220;<U>Agreement</U>&#8221;) to extend the originally
scheduled closing deadline for the Purchaser&#8217;s acquisition of the
Property until December&nbsp;17, 2008, or such earlier date as the parties may
each approve. In addition, the Purchaser has the right to further extend the
closing date until January&nbsp;16, 2009 provided the Purchaser pays directly
to Seller an additional $2.0&nbsp;million earnest money deposit. Purchaser has
currently funded $6.0&nbsp;million of earnest money, which has been released
from escrow and is being held by Seller, and which is non-refundable to the
Purchaser except in the event of a Seller default or the failure of certain
customary conditions to the Purchaser&#8217;s obligations to close.

<P style="font-size: 10pt; text-indent: 4%" align="left">The gross purchase
price for the Property is $124.0, million subject to customary pro-rations,
credits and adjustments, including credits for various matters the Seller has
agreed to give the Purchaser aggregating $2.0 million.

<P style="font-size: 10pt; text-indent: 4%" align="left">The Purchaser has
completed its due diligence inspection of the Property and is obligated to
purchase the Property subject to certain customary conditions contained in the
purchase and sale agreement. In the event that the Purchaser defaults on its
obligation to purchase the Property, Seller&#8217;s sole remedy is to receive
the earnest money as liquidated damages.

<P style="font-size: 10pt; text-indent: 4%" align="left">There can be no
assurances that all of the conditions to closing will be satisfied and that
this transaction will actually close, or that if it does close, it will close
pursuant to the foregoing timetable or the terms set forth in this Form 8-K.

<P style="font-size: 10pt" align="left"><B>Item&nbsp;4.02 Non-Reliance on
Previously Issued Financial Statements or a Related Audit Report or Completed
Interim Review.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">As previously reported
on a Current Report on Form 8-K filed with the Securities and Exchange
Commission filed on August&nbsp;21, 2008, the Audit Committee of the Board of
Trustees (the&nbsp;&#8220;<U>Audit Committee</U>&#8221;) of the Company, in
consultation with members of the Company&#8217;s management and its independent
accountants, determined that the Company&#8217;s distributions to the owners of
the common units of Prime Group Realty, L.P. (the &#8220;Operating
Partnership&#8221;) were incorrectly recorded on the Company&#8217;s
Consolidated Financial Statements and that it would restate its Consolidated
Financial Statements and other financial information for the years ended
December&nbsp;31, 2006 and 2007, and for the first and second quarters of 2008.
This change relates only to the interpretation of existing accounting
literature and does not involve new facts or circumstances. In addition, these
restatements only involve GAAP book entries and have no impact on the
Company&#8217;s cash flow or cash liquidity for the periods affected.

<P style="font-size: 10pt; text-indent: 4%" align="center">&nbsp;

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

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

<P style="font-size: 10pt; text-indent: 4%" align="left">The Company stated in
its prior Form 8-K that it expected such restatements to these financial
statements to be completed within several weeks. The Company&#8217;s
preparation of the restatements has taken longer than initially anticipated,
but notwithstanding such delay, the restatements for the periods prior to 2008
do not involve any additional changes to the financial statements other than
those previously disclosed. In addition to the adjustments previously disclosed
for the first two quarters of 2008, net loss will decrease by approximately
$10.3&nbsp;million for the three months ended March&nbsp;31,&nbsp;2008 and net
loss will decrease by approximately $6.7&nbsp;million for the six months ended
June&nbsp;30, 2008. The Company intends to complete and file the restatements
in the next several weeks as soon as practicable.

<P style="font-size: 10pt; text-indent: 4%" align="left">This Form 8-K 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; text-indent: 4%" align="left">The Company issued a
press release on October&nbsp;21, 2008 disclosing the foregoing matters set
forth in this Form 8-K. A copy of the press release is attached hereto as
Exhibit&nbsp;99.1 and incorporated herein by reference.

<P style="font-size: 10pt" align="left"><B>ITEM 9.01 Financial Statements and
Exhibits.</B>

<P style="font-size: 10pt; text-indent: 4%" align="left">(c)&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 nowrap align="left">Exhibit</TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="center">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap align="left">No.</TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap
align="center">Description</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
October,&nbsp;21&nbsp;2008.</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>

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<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="left">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.

<P style="font-size: 10pt; text-indent: 45%" align="left">PRIME GROUP REALTY
TRUST
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" cellpadding="0" width="100%"
border="0">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="45%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="50%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">Dated: October&nbsp;21, 2008
</DIV>
</TD>
  <TD>By:&nbsp;</TD>
  <TD valign="top" align="left">/s/ Jeffrey A. Patterson</TD>
 </TR>
 <TR style="font-size: 1px">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD style="border-top: #000000 1px solid" valign="top"
align="left">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left">Jeffrey A. Patterson</TD>
 </TR>
 <TR valign="bottom">
  <TD valign="top">
<DIV style="margin-left: 0px; text-indent: 0px">&nbsp;</DIV>
</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>

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<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>EXHIBIT INDEX</B>
<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 nowrap align="left">Exhibit</TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="center">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap align="left">No.</TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap
align="center">Description</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
October,&nbsp;21&nbsp;2008.</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

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

<P style="display: none; font-size: 10pt" align="center">5
</DIV>

</BODY>
</HTML>
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{"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": "081133932"}, "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): October 15, 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 Material
Definitive Agreement.
On September 9,
2008, Prime Group Realty Trust (the "
Company
") filed a
Current Report on Form 8-K disclosing that on September 3, 2008, Younan
Properties, Inc. ("
Purchaser
") became obligated to purchase
180 North LaSalle Street, Chicago, Illinois (the
"
Property
"), from the subsidiary of the Company
("
Seller
") that owns the Property.
On October 21,
2008, the Company issued a press release announcing that on
October 15, 2008, the Purchaser and Seller amended the purchase and
sale agreement (the "
Agreement
") to extend the originally
scheduled closing deadline for the Purchaser's acquisition of the
Property until December 17, 2008, or such earlier date as the parties may
each approve. In addition, the Purchaser has the right to further extend the
closing date until January 16, 2009 provided the Purchaser pays directly
to Seller an additional $2.0 million earnest money deposit. Purchaser has
currently funded $6.0 million of earnest money, which has been released
from escrow and is being held by Seller, and which is non-refundable to the
Purchaser except in the event of a Seller default or the failure of certain
customary conditions to the Purchaser's obligations to close.
The gross purchase
price for the Property is $124.0, million subject to customary pro-rations,
credits and adjustments, including credits for various matters the Seller has
agreed to give the Purchaser aggregating $2.0 million.
The Purchaser has
completed its due diligence inspection of the Property and is obligated to
purchase the Property subject to certain customary conditions contained in the
purchase and sale agreement. In the event that the Purchaser defaults on its
obligation to purchase the Property, Seller's sole remedy is to receive
the earnest money as liquidated damages.
There can be no
assurances that all of the conditions to closing will be satisfied and that
this transaction will actually close, or that if it does close, it will close
pursuant to the foregoing timetable or the terms set forth in this Form 8-K.
Item 4.02 Non-Reliance on
Previously Issued Financial Statements or a Related Audit Report or Completed
Interim Review.
As previously reported
on a Current Report on Form 8-K filed with the Securities and Exchange
Commission filed on August 21, 2008, the Audit Committee of the Board of
Trustees (the "
Audit Committee
") of the Company, in
consultation with members of the Company's management and its independent
accountants, determined that the Company's distributions to the owners of
the common units of Prime Group Realty, L.P. (the "Operating
Partnership") were incorrectly recorded on the Company's
Consolidated Financial Statements and that it would restate its Consolidated
Financial Statements and other financial information for the years ended
December 31, 2006 and 2007, and for the first and second quarters of 2008.
This change relates only to the interpretation of existing accounting
literature and does not involve new facts or circumstances. In addition, these
restatements only involve GAAP book entries and have no impact on the
Company's cash flow or cash liquidity for the periods affected.
The Company stated in
its prior Form 8-K that it expected such restatements to these financial
statements to be completed within several weeks. The Company's
preparation of the restatements has taken longer than initially anticipated,
but notwithstanding such delay, the restatements for the periods prior to 2008
do not involve any additional changes to the financial statements other than
those previously disclosed. In addition to the adjustments previously disclosed
for the first two quarters of 2008, net loss will decrease by approximately
$10.3 million for the three months ended March 31, 2008 and net
loss will decrease by approximately $6.7 million for the six months ended
June 30, 2008. The Company intends to complete and file the restatements
in the next several weeks as soon as practicable.
This Form 8-K 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.
The Company issued a
press release on October 21, 2008 disclosing the foregoing matters set
forth in this Form 8-K. A copy of the press release is attached hereto as
Exhibit 99.1 and incorporated herein by reference.
ITEM 9.01 Financial Statements and
Exhibits.
(c) Exhibits.
Exhibit
No.
Description
99.1
Press Release of Prime Group Realty Trust dated
October, 21 2008.
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
Dated: October 21, 2008
By:
/s/ Jeffrey A. Patterson
Jeffrey A. Patterson
President and Chief Executive Officer
EXHIBIT INDEX
Exhibit
No.
Description
99.1
Press Release of Prime Group Realty Trust dated
October, 21 2008.