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. – Katherine Clarke [more]

Commercial real estate brokerage Grubb & Ellis may soon put itself up for sale. According to Bloomberg News, the company said in a regulatory filing yesterday that it has tapped investment bank JMP Securities as an adviser on its options for the future, including a possible merger or sale. Grubb & Ellis stock closed at 98 cents per share yesterday, down 23 percent over the last year. The California-based company is now valued at $68 million. Chairman C. Michael Kojaian said Grubb & Ellis has received unsolicited inquiries from prospective buyers and subsequently decided that “a formal process is in the best interest of all of our constituents.” [Bloomberg]