Wednesday, December 7, 2011

C-III and Grubb Ellis accused of breaking the rules

The WSJ reports.

C-III Asset Management, agreed last month to allow C. Michael Kojaian, the owner of the two buildings, to pay off loans at greatly discounted amounts, according to a report by Amherst Securities Group's research unit. The loans for $24.2 million and $22.6 million were paid off for a total of about $8 million...

Days after C-III and Mr. Kojaian finalized the deal, Trinity Health, a large not-for-profit health system, announced that it had signed a lease for 340,000 square feet in the two buildings.

Three days after the loan payoff on the two Michigan properties, Grubb & Ellis announced that it was in exclusive negotiations with C-III on a strategic partnership....

I heavily pared the WSJ article comments back.

1 comment:

Anonymous said...

The word 'fraud' comes to mind after reading the WSJ piece, but details are obviously important. A bit disturbing that the special didn't know about the prospect - pretty dirty move on the part of the owner; next time he wants a workout he may find a less than cooperative special.