Grubb & Ellis Co. reports 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. The investments will position both C-III and Colony Capital as significant stakeholders in Grubb & Ellis.
‘We look forward to working with C-III and Colony to complete a transaction which offers broad benefits to our professionals and platform," Grubb & Ellis President and CEO Thomas P. D'Arcy says. "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."
In March, Colony, an international firm that focuses primarily on debt and equity investments in real estate-related assets, provided Grubb & Ellis with $18 million in financing in exchange for a 60-day negotiating period to evaluate a larger strategic investment in Grubb & Ellis.