Grubb & Ellis Healthcare REIT II Completes Transition from Grubb & Ellis to Griffin-American Healthcare REIT II

grubb-ellis-healthcare-reitSuperficially, it may look like a simple corporate name change, but Santa Ana-based Grubb & Ellis Healthcare REIT II‘s successful transition to “Griffin-American Healthcare Trust Inc.” has reportedly hatched a host of changes, including several high profile defections, reorganization in their capital market activities including several non-traded REITs. In early 2012, with Grubb & Ellis Co. allegedly about to file for bankruptcy protection, the firm transferred its non-traded REIT advisory and dealership business to a team led by American Healthcare Investors and Griffin Capital Corp., changing the fund’s name in the process. The company has raised $2.84 billion from investors. The four-month process was allegedly loaded with corporate complications: Griffin-American Healthcare reportedly made an unsolicited offer to purchase the former Grubb & Ellis Healthcare REIT II, but then instead wound up recruiting a host of experienced executives; American Healthcare Investors went on an executive shopping spree of its own involving Grubb & Ellis executives. Grubb & Ellis Co. was also reportedly delisted from the New York Stock Exchange.

Four Bidders Emerge for Griffin-American Healthcare REIT II

In May of 2014 here were four bidders for Griffin-American Healthcare REIT II, in a deal that could value the company at nearly $3.7 billion, according to people involved in the negotiations. The bidders included Chicago’s Ventas, Inc., Health Care REIT Inc., HCN of Toledo, Ohio, Nicholas Schorsch’s American Realty Capital Healthcare Trust HCT, and a division of Northstar Realty Finance, sources reported. Griffin-American, a non-traded REIT, is publicly owned, but not traded on a stock exchange. Instead, shares in the company are sold by a network of broker-dealers to investors.

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The Peiffer Rosca securities attorneys often represent investors who lose money as a result of misconduct by investment professionals who recommend to them unsuitable real estate investment programs or fail to disclose to them important risks associated with investing in such programs.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

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