D’Arcy sees efficiencies of scale.

SANTA ANA-Grubb & Ellis, which has been exploring a sale or merger since March, has entered into exclusive negotiations with New York City-based C-III Capital Partners and an affiliate of Santa Monica, CA-based Colony Capital LLC. A C-III affiliate also has agreed to invest $10 million in Grubb & Ellis through the expansion of Grubb’s existing $18 million credit facility with Colony Capital, a move that “will establish both C-III and Colony Capital as significant stakeholders in Grubb & Ellis,” according to a statement this morning by the Santa Ana-based firm.

The talks with C-III and Colony are the latest in a series of moves that Grubb & Ellis has made to smooth the way for a sale or merger since the company, in March, hired JMP Securities as its financial adviser to explore strategic alternatives. Earlier this month, Grubb sold its Alesco Global Advisors unit to Lazard Asset Management LLC, and in August the company sold its TIC business, called Daymark Realty Advisors, to buyers in New York City and San Diego. Both moves were considered keys to the possible sale of Grubb & Ellis, the company said.