NEWPORT BEACH, CA-The company formerly known as Grubb & Ellis Healthcare REIT II has received a crucial approval from federal regulators to change the sponsorship of the healthcare REIT from Grubb & Ellis to a group led by Griffin Capital Securities.

Griffin says it has received a “no objections” letter from the Financial Industry Regulatory Authority, known as FINRA. Essentially, the document says that FINRA will not oppose the sponsorship changes to the REIT, now known as Griffin-American Healthcare REIT II Inc.

“This is the key approval that we needed,” says a Griffin-American spokesperson. “This was the hardest one to get, so it’s very good news.”

A final approval remains to be received from the US Securities & Exchange Commission, which is reviewing a newly prepared prospectus for the renamed REIT, according to the spokesman. Industry observers suggest that approval could come as early as next week.

Earlier this year, Griffin Capital Corp. was selected, along with Newport Beach-based American Healthcare Investors, to serve as co-sponsors of Grubb & Ellis Healthcare REIT II by REIT’s board of directors. Griffin Capital is to serve as the dealer manager of the REIT's offering.

"We have all worked diligently with both FINRA and the SEC to accomplish this transition in a seamless fashion for our broker-dealer partners and stockholders," says Jeff Hanson, chairman and CEO of the REIT, in a statement. 

At the end of November, the REIT has buildings valued at approximately $430.8 million, based on purchase price, with another $278 million of property acquisitions expected to close in the coming weeks. Those purchases represent a 266% growth in the portfolio since January 2011.