Grubb & Ellis in Investment Pact

Grubb & Ellis Company (GBE) recently announced that it has entered into negotiations with a subsidiary of C-III Capital Partners LLC, which has partnered with an affiliate of Colony Capital LLC for an investment deal with the company.

A C-III affiliate has agreed to invest $10 million in Grubb & Ellis by enhancing the company's existing $18 million credit facility with Colony Capital and will purchase $4 million of Colony's existing facility. Through this transaction, both C-III and Colony Capital will emerge as significant stakeholders in Grubb & Ellis.

C-III Capital Partners is an affiliate of Island Capital Group LLC, which owns controlling interests in a number of businesses and manages assets in excess of $150 billion. Colony Capital is a private, international investment firm focusing primarily on debt and equity investments in real estate-related assets and operating companies.

Capital Partners and Colony are organizations with industry expertise and capital base, which is necessary for supplementing Grubb & Ellis clients’ offerings and thereby providing significant growth opportunities for the company.

Grubb & Ellis is one of the largest commercial real estate services and investment companies in the world. The company offers transaction, management, consulting and investment services, which are supported by highly regarded proprietary market research and extensive local expertise. The company is a leading sponsor of real estate investment programs through its investment management business.

Grubb & Ellis currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Jones Lang Lasalle Inc. (JLL - Analyst Report) holds a Zacks #4 Rank, which translates into a short-term Sell rating.

Read the full analyst report on JLL

Read the full analyst report on GBE