Grubb & Ellis Announces Pricing of $30M of Unsecured Convertible Senior Notes

SANTA ANA, CA— Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, has entered into an agreement to sell $30.0 million aggregate principal of unsecured convertible senior notes due in 2015.

The notes will have an interest rate of 7.95% per annum and are being offered at a price equal to 100% of their face value. The company also granted the initial purchaser a 45-day option to purchase up to an additional $4.5 million aggregate principal amount of notes to cover over-allotments, if any.

The company estimates that the net proceeds from the offering will be approximately $28.0 million after deducting offering expenses. The company intends to use the net proceeds from the offering to fund growth initiatives, short-term working capital and general corporate purposes.

The notes are being sold in a private placement to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933. The sale of the notes is expected to close on or about May 7, 2010, subject to customary closing conditions.

The notes will be convertible into common stock at an initial conversion rate of 445.583 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $2.24 per share and is a 17.5 percent premium above the closing price of the company’s common stock on May 3, 2010. The conversion rate is subject to adjustment in certain circumstances.

The notes and the underlying common stock issuable upon conversion have not been registered under the Securities Act or applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes (including the shares of common stock into which the notes are convertible), nor shall there be any sale of the notes (including the shares of common stock into which the notes are convertible) in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

Contact: Janice McDill, Phone: 312.698.6707, Email: janice.mcdill@grubb-ellis.com