SANTA ANA, CA (Oct. 17, 2011) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced today that it has entered into exclusive negotiations with a subsidiary of C-III Capital Partners LLC, an affiliate of Island Capital Group LLC, which has partnered with an affiliate of Colony Capital LLC regarding a strategic transaction with the company. A C-III affiliate also has agreed to 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, which will establish both C-III and Colony Capital as significant stakeholders in Grubb & Ellis.
“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 (top right photo)
“Grubb & Ellis is a long-time leader in the real estate industry and we share management’s vision of strengthening the platform and growing the company. C-III Capital Partners and Colony have the capital base and industry expertise necessary to bolster Grubb & Ellis’ client offerings and position the company for long-term success,” said Andrew L. Farkas (middle left photo), chairman and CEO of C-III Capital Partners.
Farkas is the founder of New York-based Island Capital Group LLC and former chairman and CEO of Insignia Financial Group, Inc. Island Capital Group is a leading international real estate merchant banking firm specializing in real estate investing, real estate operating businesses and real estate securities. Island Capital was founded by Farkas in 2003 immediately following Insignia’s merger with CB Richard Ellis.
“We look forward to working with C-III and Colony to complete a transaction which offers broad benefits to our professionals and platform. A transaction with these two highly regarded firms would provide the scale for us to more efficiently and effectively serve our clients and broker-dealer partners,” said Thomas P. D’Arcy (lower right photo), president and chief executive officer of Grubb & Ellis.
JMP Securities is serving as financial advisor to Grubb & Ellis.
Contact: Janice McDill, Phone: 312.698.6707
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