Grubb & Ellis Still Exploring Sale with Colony Capital, OthersTuesday, May 31, 2011
Santa Ana-based commercial real estate company Grubb & Ellis Co. is still seeking potential suitors for a potential sale of the company and its Daymark Realty Advisors subsidiary, the company said on Tuesday.
In late March, Grubb struck a potentially lifesaving $18 million financing deal with Colony Capital LLC, a Los Angeles-based hedge fund manager.
That deal gave Colony—led by billionaire real estate investor Tom Barrack—a 60-day exclusivity period to consider a larger strategic transaction with Grubb, whose stock has been battered by the commercial real estate downturn as well as an ill-fated combination with Santa Ana-based NNN Realty Advisors in 2007.
The exclusivity period ended on Sunday without a larger transaction, including a potential sale of Grubb, being announced.
Grubb said on Tuesday it will now “actively engage in discussions with additional parties, while continuing discussions with Colony.”
Grubb also said it has made “significant progress” in the potential sale of Daymark, the company’s wholly owned subsidiary.
Daymark, formed earlier this year, runs Grubb’s tenant-in-common portfolio, which totals about 30 million square feet.
Grubb’s stock closed up about 5% on Tuesday’s announcement. The company has a market value of nearly $40 million.