(Mark your calendars: RealShare Orange County, Aug. 18th in Newport Beach, CA)
SANTA ANA, CA-Grubb & Ellis Co. has sold its Daymark Realty Advisors subsidiary to buyers in New York City and San Diego, exiting the tenant-in-common business that it entered as part of the company’s 2007 merger with NNN Realty Advisors. The buyer is a joint venture entity controlled by San Diego-based Sovereign Capital Management Group and New York City-based Infinity Urban Century, an investment affiliate of The Infinity Group.
Grubb formed Daymark in February as a wholly owned and separately managed subsidiary responsible for the management of its tenant-in-common portfolio. The subsidiary oversees a nationwide portfolio of commercial property totaling approximately 33 million square feet, including more than 8,700 multifamily units.
The sale of Daymark could be key to a possible sale of Grubb, the company has said previously. Santa Ana-based Grubb & Ellis has been exploring a potential sale or merger since hiring JMP Securities in March to evaluate such alternatives. Thomas P. D’Arcy, president and CEO of Grubb & Ellis, said in a statement Wednesday afternoon that the sale of Daymark “will allow us to focus on profitability and growth, while continuing to review our broader corporate strategic alternatives.”
Etienne Locoh, managing partner of Infinity’s Urban Century investment unit, described the Daymark portfolio as “one of the most attractive portfolios of tenant-in-common properties in the US.”
The sale involved the purchase of Daymark stock by the joint venture entity, and FBR Capital Markets & Co. served as financial adviser to Grubb & Ellis in connection with the transaction. Terms of the sale were not disclosed. Grubb & Ellis says that it will furnish additional terms of the transaction in a future filing with the Securities and Exchange Commission.
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