Grubb & Ellis Closes Largest Single Asset Office Transaction in Sacramento County in 2009

SAN FRANCISCO, CA– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that on behalf of an institutional joint venture, the company facilitated the sale of 10000 Goethe Road in Sacramento and 1650 Harbor Bay Parkway in Alameda to a private investor.

While the actual sale price of the assets was not disclosed, the Sacramento sale is believed to be the largest single office building sale in Sacramento County in 2009.

Edward Suharski, (bottom right photo) executive vice president, and Steven Golubchik and Seth McKinnon, vice presidents, all members of Grubb & Ellis’ Institutional Capital Markets group, represented the joint venture in the transaction. The buyer represented itself.

“In the midst of the recession, our team worked closely with the seller to facilitate the sale of these buildings in a relatively short period, showing that there are still buyers in the market for quality product,” Suharski said. “We received interest from both private capital and institutional investors, but ultimately a private buyer was selected due to their offering structure and their quick close.”

Golubchik added, “Although some institutions are sitting on the sidelines, private capital investors see this current market cycle as one of the best opportunities to buy and have begun to snatch up recent offerings on an all cash basis and with very quick closings. There remains strong investor confidence in the stability and resilience of the Sacramento marketplace.”

Located within the master-planned South Bradshaw Business Center, 10000 Goethe Road is a two-story, 126,000-square-foot Class A office building that is 100 percent leased to the State of California on a long-term basis. The property was completed in 1997.

Offering approximately 64,000 square feet of space, 1650 Harbor Bay Parkway is a two-story R&D/office building that was completed in 2001. The property is accessible via the newly constructed Ron Cowan Parkway on Interstate 880, linking it with Oakland, San Francisco and the Silicon Valley. It was 89 percent occupied at the time of sale.

Contact: Julia McCartney, Phone: 714.975.2230, Email: julia.mccartney@grubb-ellis.com