CHICAGO-Locally based Grubb & Ellis has merged with NNN Realty Advisors, based in Santa Ana, CA, to form a company with a total capitalization of $725 million. The California firm, specializing in asset management and services, had filed for an IPO to raise $423 million two weeks ago, in hopes of becoming a public company.

The merger was approved by the board of directors from both companies. NNN Realty Advisors, the parent company of Triple Net Properties (the sponsor of funds and REITs), Triple Net Properties Realty Inc. (the brokerage company) and NNN Capital Corp. (the broker/dealer), will now operate using the Grubb & Ellis name. However, the new company will operate out of Santa Ana, and the new board will include three members nominated by Grubb & Ellis and six members nominated by NNN. Specifically, Anthony W. Thompson, founder and chairman of the board of NNN Realty Advisors, will join Grubb & Ellis as chairman of the board. C. Michael Kojaian, chairman of the Grubb & Ells board, will remain on the board. Scott D. Peters, president and CEO of NNN, will join the board and will become CEO of the combined firm.

A Grubb & Ellis spokeswoman says she cannot comment on the deal, but that more details will be released in a conference call at 4 pm Thursday, EDT. A representative at the Chicago NNN Realty office says she had not heard of the deal, but was supposed to be on an important conference call a few minutes later. Grubb & Ellis officials contacted said they could not comment on the deal. “It’s news to us as well,” said one of the officials, who asked not to be named.

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