SANTA ANA, CA (June 03, 2010) – Grubb & Ellis Equity Advisors, the primary real estate investment and asset management subsidiary of Grubb & Ellis Company (NYSE: GBE), announced today that it has eliminated potential internalization fees for the non-traded real estate investment trusts for which it provides advisory and management services.
Currently registered offerings affected by the policy are Grubb & Ellis Healthcare REIT II, Inc. and Grubb & Ellis Apartment REIT, Inc.
“We have taken this action because we believe it is in the best interests of the stockholders whom have invested in our real estate investment trusts,".said Thomas P. D’Arcy, (top right photo) chairman of Grubb & Ellis Equity Advisors and president and chief executive officer of Grubb & Ellis Company.
"This action further reinforces that Grubb & Ellis Equity Advisors is fully focused on working to provide superior returns to our investors and we believe our sponsorship philosophy will help build long-term brand value for Grubb & Ellis as a leading sponsor in the non-traded REIT sector.
“This decision clearly demonstrates our commitment to our partnership with the broker-dealer community, registered representatives and individual investors.”
Grubb & Ellis is the first major sponsor of publicly-registered, non-traded REITs to eliminate potential internalization fees, which are typically paid when a REIT matures to the point that its board of directors determines that the REIT should become internally managed. Between 2000 and 2007, seven non-traded REITs paid internalization fees ranging from $68 million to $375 million.
“Through this decisive action, Grubb & Ellis Equity Advisors directly aligns its interests with those of its non-traded REIT stockholders and demonstrates our commitment to the success of our investment programs.”
Publicly registered, non-traded real estate investment trusts raised approximately $58.7 billion in investor equity between 2000 and 2009. The industry is expected to raise between $7.5 billion and $8 billion in 2010, according to Robert A. Stanger & Company, which tracks the sector.
Contact:
Damon Elder. Senior Director, Communications, Grubb & Ellis Equity Advisors, LLC, 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, 714.667.8252 ext. 52659, 714.975.2659 direct
714.356.1460 cell, http://equityadvisors.grubb-ellis.com/
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