Grubb & Ellis Co. announced this week that it had filed for bankruptcy protection and agreed to sell the majority of its assets to BGC Partners. The proposed sale to BGC Partners Inc. will require court approval as part of Grubb & Ellis’ Chapter 11 bankruptcy process reported The Washington Post. The filing listed $150 million in assets and $167 million in debt as of the end of last year. BGC will provide financing of up to $4.8 million to keep Grubb & Ellis operating while the acquisition closes, according to the filing.
Howard W. Lutnick, Chairman and Chief Executive Officer of BGC, said that "this transaction reflects the deep and unwavering commitment of BGC -- the fastest growing, and one of the world's largest, global brokerage companies serving the financial markets -- to build a premier position in real estate services. We agreed to acquire Grubb & Ellis because we believe Newmark Knight Frank's and Grubb & Ellis' broad knowledge and extensive brokerage expertise, combined with BGC's powerful proprietary technology and our strong financial backing, will enable Grubb & Ellis to thrive and grow as part of the BGC family of companies."
Thomas P. D'Arcy, President and Chief Executive Officer of Grubb & Ellis, added, "We believe this transaction enhances our value proposition to our clients and strengthens our position in the commercial real estate marketplace. BGC's strong capital base, robust technology and deep commitment to its brokers provides Grubb & Ellis with scale along with the resources needed by our professionals to deliver exceptional service to our clients. We are confident this will be a seamless transition for our clients and that becoming part of BGC is an extremely attractive opportunity for our brokerage professionals and employees."
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