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SANTA ANA, CA-G REIT, a specialty REIT advised by Grubb &Ellis subsidiary Triple Net Properties that owns buildings occupiedby government tenants, intends to enter into a liquidating trust onJan. 22 to wind up the company's affairs and liquidate its assets.The specialty REIT, which was incorporated in 2001, has sold alarge portion of its assets in the past two years as part of along-range liquidation plan and expects to dispose of its sixremaining investments this year, according to its publicfilings.

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"Although we can provide no assurances, we currently expect tosell all of our assets by March 31, 2008 and anticipate completingour plan of liquidation by June 30, 2008," it states in one of itsrecent filings. As of Sept. 30, G REIT owned interests in sixproperties totaling 1.6 million sf, with 49.2% of that spaceoccupied by government-related tenants.

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The formation of the liquidating trust is one of the final stepsaimed toward the eventual dissolution of G REIT, which sold nineproperties last year after disposing of 10 properties in 2006 undera liquidation plan approved by its stockholders in February 2006.Proceeds from the sales have been distributed to stockholders.

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The idea behind G REIT is that government-oriented tenantsprovide a stable source of rent and, when they grow, are likely toexpand within the same buildings they already occupy. G REITacquired all of its properties separately from Triple Net, butTriple Net acts as adviser to the REIT and manages the latter'sday-to-day operations. Triple Net became a wholly owned indirectsubsidiary of Grubb & Ellis with the recent merger of NNNRealty Advisors and Grubb & Ellis.

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The G REIT liquidation has involved high-profile office buildingsales in a number of markets, including a sale last year in whichthe REIT disposed of the 573,000-sf One World Trade Center officecomplex in Long Beach for $148.9 million and a deal in August inwhich the Santa Ana-based firm sold its 211,000-sf MadronaBuildings office complex in Torrance for $52.5 million. G REIT'sliquidation is similar to that of another specialty REIT called TREIT that was advised by Triple Net.

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T REIT was formed in 1998 to invest in office, retail,industrial and service properties in states that do not have stateincome taxes in order to take advantage of greater economic growththat was anticipated in those states. Both were established asnontraded REITs, so-called because their shares do not tradepublicly but are owned by shareholders who must meet certainqualifications to own the stock.

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