Grubb & Ellis Sells Daymark Realty in Stock Transaction
- Aug 12, 2011
August 12, 2011
By Barbra Murray, Contributing Editor
Commercial real estate services firm Grubb & Ellis Co. has decided to bid adieu to the tenant-in-common business with the sale of Daymark Realty Advisors Inc. to a joint venture involving Sovereign Capital Management Group and Infinity Urban Century. The partners acquired Daymark through the purchase of stock.
In late 2010, as part of its operations restructuring, Grubb & Ellis created Daymark as a wholly owned subsidiary to manage what is now a $4.9 billion national tenant-in-common portfolio of 33 million square feet of commercial space and 8,700 multifamily units — a portfolio that Grubb & Ellis came into possession of with its 2007 merger with NNN Realty Advisors Inc. The union marked the firm’s entrée into the TIC world. And now the company has made its exit.
“Tenant-in-common has not been a core business of Grubb & Ellis for quite some time and that’s why the company was put up for sale,” a Grubb & Ellis spokesperson told Commercial Property Executive. The firm relied on FBR Capital Markets & Co. to serve as financial advisor on the transaction.
“This sale will allow us to focus on profitability and growth, while continuing to review our broader corporate strategic alternatives,” Thomas P. D’Arcy, president and CEO of Grubb & Ellis, said.
Daymark revenue in the first quarter totaled $4 million, a 15.8 percent decrease from the first quarter of 2010.