From left: Andrew Farkas, chairman and CEO of C-III Capital Partners, and Grubb & Ellis Chairman C. Michael Kojaian
C-III Capital Partners, an affiliate of Island Capital Group, is set to become a significant stakeholder in Grubb & Ellis with Colony Capital, Grubb & Ellis announced today. Grub & Ellis has entered into exclusive negotiations with a subsidiary of C-III Capital Partners regarding what it called “the strategic transaction.”
A C-III affiliate also will invest $10 million in Grubb & Ellis through the expansion of the company’s existing $18 million credit facility with Colony Capital and purchase $4 million of Colony’s existing facility.
“This announcement is very positive for Grubb & Ellis employees, clients and stakeholders. C-III Capital Partners and Colony Capital are highly regarded multifaceted organizations with deep expertise and involvement in the commercial real estate industry. Partnering with these firms offers significant growth opportunities for Grubb & Ellis,” said Grubb & Ellis Chairman C. Michael Kojaian.
Andrew Farkas, chairman and CEO of C-III Capital Partners, said the agreement would put Grubb & Ellis on firmer footing.
“C-III Capital Partners and Colony have the capital base and industry expertise necessary to bolster Grubb & Ellis’ client offerings,” Farkas said.
Earlier this year, it was reported that Grubb & Ellis might be considering a merger or even a sale. The company said in a regulatory filing in April that it has tapped investment bank JMP Securities as an adviser on its options for the future, including a possible merger or sale. – Katherine Clarke
March 03, 2012 at 10:21 pm, NYC real estate pros expect BGC Partners’ purchase of Grubb & Ellis to … | My Blog said:
[...] Last month, BGC authorised an choice to deposit in Grubb, that has about 3,000 employees nationwide, to expire. However, it sensitively continued discussions, and negotiated an agreement Feb. 17 to buy a outstanding, secured debt for $30 million from Grubb cumulative creditors such as Andrew Farkas’ C-III Capital…. [...]