Colony Capital and Andrew Farkas’ C-III Capital Partners Enter Into Agreement with Grubb & Ellis Company

A subsidiary of C-III Capital Partners, a provider of innovative real estate equity and debt solutions where Andrew Farkas serves as CEO, partnered with an affiliate of Colony Capital, a private real estate investment firm.  Together they entered into negotiations with Grubb & Ellis Company, a leading real estate services and investment firm.  If the agreement goes through, C-III and Colony Capital would be significant stakeholders in Grubb & Ellis.

“Grubb & Ellis is a long-time leader in the real estate industry and we share management’s vision of strengthening the platform and growing the company,” said Andrew Farkas, chairman and CEO of C-III Capital Partners.  “C-III Capital Partners and Colony have the capital base and industry expertise necessary to bolster Grubb & Ellis’ client offerings and position the company for long-term success.”

An affiliate of C-III Capital Partners will invest $10 million in Grubb & Ellis’ existing $18 million credit facility with Colony Capital.  This affiliate has also agreed to buy $4 million of Colony Capital’s existing facility.

“This announcement is very positive for Grubb & Ellis employees, clients and stakeholders,” said Grubb & Ellis Chairman C. Michael Kojaian.  “C-III Capital Partners and Colony Capital are highly regarded multifaceted organizations with deep expertise and involvement in the commercial real estate industry.  Partnering with these firms offers significant growth opportunities for Grubb & Ellis.”