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Grubb & Ellis secures $18 million in financing

The deal with Colony Capital could lead to a 'larger strategic investment.'

By OC METRO staffPublished: March 31, 2011 02:22 PM

Santa Ana-based Grubb & Ellis has landed $18 million in financing from Los Angeles-based Colony Capital LLC – and the deal could lead to a "larger strategic investment," according to the local real estate company.

The news comes shortly after Grubb & Ellis tapped JMP Securities to look into strategic alternatives such as a possible sale or merger of the business (click here for more). JMP Securities acted as a financial adviser to Grubb & Ellis in the new funding deal.

In conjunction with the funding, Colony Capital, an international investment firm, has a 60-day negotiating period to consider a potential investment with Grubb & Ellis.

"Colony Capital is a premier real estate investment and advisory firm with a strong track record of identifying undervalued real estate and corporate investment opportunities, and we welcome their support and the confidence they have shown in Grubb & Ellis," said Thomas P. D'Arcy, president and CEO. "We will work with Colony over the next 60 days as they focus on a possible larger strategic transaction."

Grubb & Ellis is a commercial real estate services and investment company with more than 5,200 professionals in more than 100 company-owned and affiliate offices. If the firm and Colony Capital enter into a definitive agreement for a strategic investment, Grubb & Ellis has the right to seek "competing transactions" for 25 days.

"With this show of support by Colony," said D'Arcy, "our clients and partners should feel confident that our experienced team of professionals will continue to provide the same outstanding service that they have come to expect from us."

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