Grubb & Ellis Co. could soon be sold to New York’s BGC Partners Inc. after a bankruptcy court judge called off an auction scheduled to be held on the sale.
A federal bankruptcy court has called off the proposed auction of Grubb & Ellis Co. after the Santa Ana, Calif., brokerage failed to attract higher bids for its acquisition.
The U.S. Bankruptcy Court for the Southern District of New York called off the auction scheduled to be held today because no other companies submitted higher offers than $30 million, the amount New York’sBGC Partners Inc. proposed to pay for Grubb & Ellis.
The auction’s cancellation clears the way for BGC to ask the court to have it determined the successful bidder and to let the sale go through. The sale would give BGC a second point of entry into the Washington area’s commercial real estate market following its acquisition of Newmark & Co. Real Estate Inc. in October.
The bidding procedures were just one of several issues that have emerged since Grubb & Ellis, which was once among the Washington area’s largest brokerage firms,filed for Chapter 11 bankruptcy protection Feb. 20.
Since then, dozens of objections have been filed with the court from across the country. Several of Grubb & Ellis’ own brokers, unsecured creditors, competitors and landlords have challenged the amount of money Grubb & Ellis says it owes them or how they would be repaid under the terms of the proposed sale to BGC. (credit to D. Sernovitz, WBJ