SANTA ANA, Calif., Aug. 10, 2011 /PRNewswire/ -- Grubb & Ellis
Company (NYSE: GBE) today announced the sale of Daymark Realty
Advisors, Inc., to a joint venture entity controlled by Sovereign
Capital Management Group and Infinity Urban Century, an investment
affiliate of The Infinity Group. Grubb & Ellis has exited
the tenant-in-common business with the disposition of its wholly
owned subsidiary.
"The sale of Daymark is extremely positive for our company.
Daymark was noncore to our Real Estate Services and
non-traded REIT businesses. This sale will allow us to focus
on profitability and growth, while continuing to review our broader
corporate strategic alternatives," said Thomas P. D'Arcy, president and chief executive
officer of Grubb & Ellis.
"We are very pleased to have completed our acquisition of
Daymark, which manages one of the most attractive portfolios of
tenant-in-common properties in the U.S., and we plan to use our
knowledge of the sector to enhance the company's competitive
advantage and performance in the marketplace," said Etienne Locoh, managing partner of Infinity's
Urban Century investment unit. "We believe that the
investment acumen and capital markets relationships of Sovereign
Capital and Infinity Urban Century will strengthen this platform
with asset capital solutions and deep real estate management
experience."
Grubb & Ellis entered the tenant-in-common business as part
of the company's 2007 merger with NNN Realty Advisors, Inc.
Daymark is one of the largest real estate asset management
companies in the country, serving more than 5,200 clients and
overseeing a nationwide portfolio of commercial property totaling
approximately 33 million square feet, including more than 8,700
multifamily units.
The sale involved the purchase of Daymark stock by the joint
venture entity. Additional terms of the transaction will be
included in a Form 8-K to be filed with the Securities and Exchange
Commission.
FBR Capital Markets & Co. served as financial advisor to
Grubb & Ellis in connection with the transaction.
About Grubb & Ellis Company
Grubb & Ellis Company (NYSE: GBE) is one of the largest and
most respected commercial real estate services and investment
companies in the world. Our 5,200 professionals in more than 100
company-owned and affiliate offices draw from a unique platform of
real estate services, practice groups and investment products to
deliver comprehensive, integrated solutions to real estate owners,
tenants and investors. The firm's transaction, management,
consulting and investment services are supported by highly regarded
proprietary market research and extensive local expertise. Through
its investment management business, the company is a leading
sponsor of real estate investment programs. For more information,
visit www.grubb-ellis.com.
About FBR & Co.
FBR & Co. (Nasdaq: FBRC) (FBR) provides investment banking,
merger and acquisition advisory, institutional brokerage, and
research services through its subsidiary FBR Capital Markets &
Co. FBR focuses capital and financial expertise on the following
industry sectors: consumer; diversified industrials; energy &
natural resources; financial institutions; insurance; real estate;
and technology, media & telecom. FBR Fund Advisers, Inc., a
subsidiary of FBR, provides clients with a range of investment
choices through The FBR Funds, a family of mutual funds. FBR is
headquartered in the Washington,
D.C. metropolitan area with offices throughout the United States and in London. For more information, please visit
www.fbr.com.
About Daymark Realty Advisors
Daymark Realty Advisors, Inc. is one of the country's leading
providers of strategic asset management and structured finance
services to the tenant-in-common industry. Daymark provides a fully
integrated platform of services that focus on maximizing property
value and performance, and offers proven expertise in the
repositioning of assets, debt restructuring and property
recapitalizations. From six offices throughout the country, Daymark
manages a nationwide portfolio of commercial real estate properties
totaling approximately 33.3 million square feet, including more
than 8,700 multifamily units, valued at $4.9
billion (based on purchase price). For more information
regarding Daymark Realty Advisors, please visit
www.DaymarkRealtyAdvisors.com.
About The Infinity Group and Sovereign Capital
Management
The Infinity Group is a New York
City based private equity investment company with
significant interests in commercial real estate. The firm's
property unit focuses on value-added asset repositioning and
distressed real estate investments. Sovereign Capital Management
Group, Inc. is a San Diego based
real estate company with an established history of successful
commercial property portfolio acquisition and management. Over the
past ten years, Sovereign has assisted over 1,500 TIC and other
retail investors with the restructuring of assets negatively
impacted by economic changes. The two firms formed a
strategic joint venture for the acquisition of Daymark Realty
Advisors, Inc. For more information visit www.infinity-group.com
and www.sovcap.com.
Forward-Looking Statements
Certain statements included in this press release may constitute
forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors that may cause the
company's actual results and events in future periods to be
materially different from those anticipated, including risks and
uncertainties related to the financial markets. Such factors which
could adversely affect the company's ability to obtain these
results include, among other things: (i) the general economic
pressures on transaction values of sales and leasing transactions
and businesses in general; (ii) a prolonged and pronounced
recession in real estate markets and values; (iii) the
unavailability of credit to finance real estate transactions in
general; (iv) the success of current and new investment programs;
(v) the success of new initiatives and investments; (vi) the
inability to attain expected levels of revenue, performance, brand
equity in general, and in the current macroeconomic and credit
environment, in particular; (vii) the occurrence of a bankruptcy by
the Met 10 tenant-in-common program or the demand for
payments on certain non-recourse/carve-out guaranty and
indemnification obligations issued by the company, which may, in
turn, in the event such bankruptcy, or such guaranty or
indemnification obligations cannot be met, result in a
cross-default under the company's issued and outstanding
Convertible Senior Notes; and (viii) other factors described in the
company's annual report on Form 10-K for the fiscal year ending
December 31, 2010, the Company's
quarterly report on Form 10-Q for the quarter ended March 31, 2011 and in other Current Reports on
Form 8-K filed by the company from time to time with the Securities
and Exchange Commission. The company does not undertake any
obligation to update forward-looking statements.
SOURCE Grubb & Ellis Company