C-III Capital Partners and Colony Capital to become Grubb & Ellis stakeholders

C-III Capital Partners, an affiliate of Island Capital Group, is set to become a significant stakeholder in Grubb & Ellis with Colony Capital, Grubb & Ellis announced today. Grub & Ellis has entered into exclusive negotiations with a subsidiary of C-III Capital Partners regarding what it called “the strategic transaction.”

A C-III affiliate also will invest $10 million in Grubb & Ellis through the expansion of the company’s existing $18 million credit facility with Colony Capital and purchase $4 million of Colony’s existing facility.

Andrew Farkas, chairman and CEO of C-III Capital Partners, said the agreement would put Grubb & Ellis on firmer footing.

“C-III Capital Partners and Colony have the capital base and industry expertise necessary to bolster Grubb & Ellis’ client offerings,” Farkas said.

Read the original article on The Real Deal.