El Paso Mum on Lakeside

Struggling energy giant El Paso Corp. says it will exit the telecom business as part of its huge "Clean Slate" cost-cutting program, which aims to sell off $3.4 billion in assets by year-end to pay down debt. El Paso won't comment directly on the fate of the Lakeside Technology Center, the 1.1 million square foot carrier hotel in Chicago that El Paso Global Networks bought from the Carlyle Group in 2001.

In an earnings release last week, El Paso said it had decided to exit the telecommunications business "through a joint venture or sale of the company's business." Insignia, which is managing the Lakeside property, said it is continuing to actively seek new tenants for the building, and referred all ownership questions to El Paso - which wouldn't say much of anything. "We are going to be selling our telecommunications business unit," said El Paso's Aaron Woods. "That's the only information I can provide with regards to Lakeside."

The former R.R Donnelly Building was redeveloped as a carrier hotel by a joint venture between the Carlyle Group and Core Location LLC. El Paso's purchase of the building was driven by its interest in the interconnection business and meet-me rooms. As of March 31, El Paso valued its investment in its telecom business at $375 million, according to a Securities and Exchange Commission filing. But Stratecast Partners recently stated that El Paso Global Networks was "no longer active on a large scale."