The chief executive of Santa Ana-based Grubb & Ellis Co. has resigned from the slumping real estate company, which is under fire from a big shareholder.
Gary Hunt, a Grubb & Ellis director, government affairs consultant and former Irvine Company executive, stepped in to replace former chief Scott Peters.
The company is seeking a permanent replacement.
Also on Friday, Grubb & Ellis said it was suspending its quarterly dividend. As part of that decision, the company plans to repurchase up to $25 million in common stock this year.
Peters took over the chief executive position at Grubb & Ellis last December, after the company was acquired by Santa Ana-based NNN Realty Advisors Inc., which kept the better-known Grubb name.
Peters had served as chief executive for NNN Realty and its Triple Net Properties LLC business since 2006.
Grubb & Ellis’ stock has fallen some 40% in 2008, following the acquisition. The company now counts a market value of about $200 million.
Late last month, former chairman Tony Thompson said he’s unhappy with the company’s performance and is seeking re-appointment to the board.
Thompson is Grubb’s second-largest shareholder with a 14% stake.
Peters plans to remain as an adviser to Grubb & Ellis, according to the company. He’s also remaining involved in two real estate investment trusts that Grubb & Ellis runs, which invest in apartments and medical buildings.
