Grubb & Ellis Forms Daymark to Manage NNN Realty's 33M SF Portfolio

 Grubb & Ellis Company has established a new wholly-owned and separately managed subsidiary to manage its nationwide tenant-in-common (TIC) portfolio of commercial real estate properties managed by NNN Realty Advisors, Inc. (NNNRA), another subsidiary. NNN RA will be a direct wholly-owned subsidiary of Daymark.
In addition to managing NNN RA's 33 million square-foot property portfolio, Daymark intends to provide similar services for unaffiliated third party owners, including strategic asset management, property management, structured finance and loan advisory services to third party owners.
Daymark will be led by Steven M. Shipp, Daymark's President and Chief Executive, Paul E. Henderson, Daymark's Executive Vice President and Chief Financial Officer, and Jeffrey A. Gregor, Daymark's Executive Vice President and General Counsel.
Shipp previously served as Executive Vice President of Portfolio Management for Grubb & Ellis Realty Investors, LLC ("GERI"), a wholly-owned subsidiary of NNN RA, and before that was a regional vice president with Bank of America. Henderson previously served as senior controller at LNR Property Corporation ("LNR"), an investment, finance and management company. Prior to working at LNR, Henderson held various senior finance positions with Conexant Systems Inc. and Hyperion Solutions Corporation, both of which are public companies listed on the NASDAQ. Gregor previously served as vice president and senior securities counsel of GERI, and prior to joining Grubb & Ellis in 2007, Gregor was a senior associate with Hirschler Fleischer in Richmond, Virginia.
The combined company will be headquartered in Santa Ana, CA. Upon
closing, the Grubb & Ellis Board will be increased to nine members which
will include six nominees from NNN Realty Advisors and three nominees from
Grubb & Ellis. Anthony W. Thompson, Founder and Chairman of the Board of
NNN Realty Advisors, will join Grubb & Ellis as Chairman of the Board. C.
Michael Kojaian, currently Chairman of the Board of Directors of Grubb &
Ellis, will remain on the Board of Directors of Grubb & Ellis. Scott D.
Peters, President and Chief Executive Officer of NNN Realty Advisors will
join the Grubb & Ellis Board of Directors.
Certain entities affiliated with the Chairman of the Board of Grubb &
Ellis Company, which collectively own approximately 39% of the outstanding
shares of Grubb & Ellis common stock, have agreed to vote their shares in
favor of the merger. Similarly, members of management and the Board of
Directors of NNN Realty Advisors who collectively own approximately 28% of
the outstanding shares of NNN Realty Advisors common stock have agreed to
vote their shares in favor of the merger.Grubb & Ellis' financial advisor with respect to the transaction. Grubb & Ellis' financial advisor with respect to the transaction was
JMP Securities LLC and NNN's financial advisor was Lehman Brothers Inc.
Grubb & Ellis' legal advisor with respect to the transaction was Zukerman
Gore & Brandeis, LLP and NNN Realty Advisors' legal advisor was Alston +
Bird LLP.