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