Beffort: Grubb & Ellis Acquisition Will Be Positive for OKC Affiliate

Article excerpt

A dramatic change expected soon in national commercial real estate giant Grubb & Ellis Co.'s finances is bound to have a positive effect on the Oklahoma City affiliate office, said Mark Beffort, president of the local company.

Although the publicly traded corporation in California needs a large infusion of money quickly, as an independent operation, the Grubb & Ellis Levy Beffort firm has no debt in any of its operations, Beffort said.

"This is actually going to increase our ability to provide our services to our clients," he said, "because Grubb & Ellis is a great brand ... and this capital will allow them to have additional resources and lines of business that will ultimately flow back to us. I think it's going to be beneficial and only strengthen our own brand."

The much larger company this week filed for Chapter 11 bankruptcy protection. Grubb & Ellis, which manages more than 250 million square feet of property nationwide, directly and through its affiliates, requested an expedited sale of assets ahead of $30 million in debt due to mature in March. Without assistance, the company doesn't have enough cash to survive the first quarter.

In response to solicitations, intermediary brokering firm BGC Partners Inc. agreed to acquire Grubb & Ellis and provide $4.8 million in bankruptcy financing. The Grubb & Ellis acquisition complements the company's recent purchase of another large commercial real estate firm, Newmark Knight Frank. …