Grubb & Ellis files for bankruptcy protection, sells assets to BGC

Miami /
Feb.February 21, 2012 02:15 PM

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.

As The Real Deal previously reported, BGC entered negotiations last month to invest in Grubb & Ellis, but ultimately did not strike a deal during the window of exclusive talks. — Adam Fusfeld


Related Articles

arrow_forward_ios
Newmark’s IPO bombed. Here’s why

Newmark’s IPO bombed. Here’s why

Newmark’s IPO bombed. Here’s why
A wide open lane for commercial brokerage IPOs

A wide open lane for commercial brokerage IPOs

A wide open lane for commercial brokerage IPOs
Newmark’s mortgage business takes a hit following hurricanes

Newmark’s mortgage business takes a hit following hurricanes

Newmark’s mortgage business takes a hit following hurricanes
Lutnick bullish on US real estate, says NGKF outpacing rivals

Lutnick bullish on US real estate, says NGKF outpacing rivals

Lutnick bullish on US real estate, says NGKF outpacing rivals
Hasta la vista, Grubb Knight Frank?

Hasta la vista, Grubb Knight Frank?

Hasta la vista, Grubb Knight Frank?
ARA Advisors acquired by parent of real estate brokerage NGKF

ARA Advisors acquired by parent of real estate brokerage NGKF

ARA Advisors acquired by parent of real estate brokerage NGKF
Placeholder image

Liquidation plan for Grubb & Ellis approved

Liquidation plan for Grubb & Ellis approved
Howard Lutnick

BGC passes on Grubb acquisition as exclusive negotiating window closes

BGC passes on Grubb acquisition as exclusive negotiating window closes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...