Grubb & Ellis is selling its assets to BGC Partners, the commercial brokerage said last night, and filed for Chapter 11 bankruptcy protection. The deal is part of an asset sale as defined by U.S. bankruptcy laws, and the brokerage will continue to operate as it completes the process. The proceeds from the sale combined with revenue from operations will support the business after the sale is complete, Grubb & Ellis said in a statement.
“We believe the transaction will be seamless for our clients and we expect no disruption to the company’s operations,” President and CEO Thomas D’Arcy, said in a statement. “Furthermore, we believe our professionals and clients will benefit greatly by being part of the BGC organization, which, with its recent acquisition of Newmark Knight Frank, will bring together two strong brands to create a powerhouse in the commercial real estate space.”
BGC is taking the company’s senior debt and is preparing to provide as much as $4.8 million in loans, according to court documents cited by Bloomberg News.