Gruss & Ellis filed Bankruptcy.
Grubb & Ellis then sold itself to BGC, in a deal both think works for them, and G&E’s creditors. BGC bought most of G&E’s senior debt (at a discount…). Think of it like buying the note on a defaulted CRE loan; now you get to foreclose and own the property – for a lot less than a regular purchase.
The BGC / G&E spin:
“Furthermore, we believe our professionals and clients will benefit greatly by being part of the BGC organization, which, with its recent acquisition of Newmark Knight Frank, will bring together two strong brands to create a powerhouse in the commercial real estate space. BGC’s purchase of the company’s senior debt and its willingness to provide incremental financing to ensure the smooth execution of the sale process demonstrate its commitment to the success of the Grubb & Ellis business.”
I wonder what the new outfit will be called?