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<CAPTION>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
FORM 5 OMB APPROVAL
( ) Check this box if no longer OMB Number: 3235-0362
subject to Section 16. Form 4 or Expires: September 30, 1998
Form 5 obligation may continue. Estimated average burden
See Instruction 1(b). hours per response........ 1.0
( ) Form 3 Holdings Reported
( ) Form 4 Transactions Reported
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
<S> <C> <C>
1. Name and Address of Reporting Person* 2. Issuer Name and Ticker or Trading Symbol 6. Relationship of Reporting Person(s)
to Issuer (Check all applicable)
Reschke Michael W. Prime Group Realty Trust (PGE)
(Last) (First) (Middle)
X Director 10% Owner
Prime Group Realty Trust 3. IRS or Social Security 4. Statement for ----- -----
77 W. Wacker Drive, Suite 3900 Number of Reporting Month/Year
(Street) Person (Voluntary) X Officer (give Other
12/31/98 ----- title below) ----- (specify
Chicago IL 60601 below)
(City) (State) (Zip)
5. If Amendment, Chairman of the Board, Trustee
Date of Original ------------------------------
(Month/Year)
7. Individual or Joint/Group Filing
(Check Applicable Line)
X Form filed by One Reporting
----- Person
Form filed by More than One
----- Reporting Person
Page 1 of 4
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FORM 5 (continued)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Ownership 7. Nature of
(Instr. 3) action action or Disposed of (D) Securities Form: Indirect
Date Code (Instr. 3, 4 and 5) Beneficially Direct Beneficial
(Instr. 8) Owned at (D) or Owner-
(Month/ --------------------------- End of Issuer's Indirect ship
Day/ Amount (A) or Price Fiscal Year (I)
Year) (D) (Instr. 3 and 4) (Instr. 4) (Instr. 4)
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Common Shares 12/17/98 A 1,388 A See Below D
(1)
- ------------------------------------------------------------------------------------------------------------------------------------
Common Shares 12/17/98 A 1,387 A See Below D
(2)
- ------------------------------------------------------------------------------------------------------------------------------------
171,775 (3)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) This grant vested on January 15, 1999.
(2) This grant will vest on January 15, 2000.
(3) The total amount of Common Shares owned includes both the Common Share grant which has vested and the Common Share grant which
has yet to vest. It also includes 74,000 Common Shares owned by Prime Group Limited Partnership, a limited partnership in which
Mr. Reschke is the managing general partner.
</FN>
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the
form displays a currently valid OMB Number. SEC 2270 (7-97)
Page 2 of 4
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FORM 5 (continued) Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Title of 2. Conver- 3. Trans- 4. Transac- 5. Number of Derivative 6. Date Exercisable
Derivative Security sion or action tion Code Securities Acquired and Expiration
(Instr. 3) Exercise Date (Instr. 8) (A) or Disposed of Date
Price of (D) (Instr. 3, 4 and 5) (Month/Day/Year)
Deriv- (Month/ -----------------------------------------------------
ative Day/ Date Expira-
Security Year) (A) (D) Exer- tion
cisable Date
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Employee Stock Option $14.00 12/17/98 A 48,611 (1) 12/17/08
(right to buy)
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Employee Stock Option $14.00 12/17/98 A 35,000 (2) 12/17/08
(right to buy)
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Common Units of Prime Group 11/17/97 A 5 7,992,418 11/17/98
Realty, L.P. (3)
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7. Title and Amount of 8. Price of 9. Number of 10. Owner- 11. Nature of
Underlying Securities Derivative Deriv- ship of Indirect
(Instr. 3 and 4) Security ative Deriva- Beneficial
(Instr. 5) Securities tive Owner-
Bene- Security: ship
ficially Direct (D) (Instr. 4)
- ------------------------ Owned at or Indirect
Amount End of (I)
Title or Number Year
of shares (Instr. 4) (Instr. 4)
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Common Shares 48,611 48,611 D
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Common Shares 35,000 35,000 D
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Common Shares 7,992,418 7,992,418 I (4)
or cash
equivalent
at option of
Prime Group
Realty Trust
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Explanation of Responses:
- -------------------------
See attached sheet for additional information /s/ Michael W. Reschke 2/08/99
------------------------------- ----------
**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a)
Note: File 3 copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the
form displays a currently valid OMB Number. SEC 2270 (7-97)
Page 3 of 4
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<PAGE>
FORM 5 (continued)
ADDITIONAL INFORMATION TO FORM 5 FOR DECEMBER 31, 1998
OF MICHAEL W. RESCHKE
CHAIRMAN OF THE BOARD AND TRUSTEE OF PRIME GROUP REALTY TRUST (PGE)
(1) The option vested on January 15, 1999.
(2) The option vests in four equal annual installments beginning on January 15,
1999.
(3) Under the term of that certain Amended and Restated Agreement of Limited
Partnership of Prime Group Realty, L.P. dated as of November 17, 1997, each
Common Unit of Prime Group Realty, L.P. may, at the option of the holder
thereof, be exchanged at any time for one Common Share of Beneficial
Interest, par value $.01 per share, of Prime Group Realty Trust (the
"Company") or, at the option of the Company, cash in an amount equal to the
value of such share.
(4) Information presented includes the 47,525 Common Units held by Prime Group
VI, L.P. whose general partner is PGLP. Inc., of which Mr. Reschke is the
controlling shareholder. Information presented also includes the 7,944,893
Common Units held by Primestone Investment Partners, L.P. ("Primestone").
Mr. Reschke is the Chairman and Chief Executive Officer of The Prime Group,
Inc. ("PGI). PGI and/or its affiliates control PG/Primestone, L.L.C. which
is the Administrative Member of Primestone.
Page 4 of 4
