Hunt has been acting CEO since the resignation July 10 of ScottD. Peters, who remains with the firm as chairman and CEO of Grubb& Ellis Healthcare REIT and as executive vice president ofGrubb & Ellis Apartment REIT. Hunt said that Grubb & Ellisis in the early stages of its search for a permanent CEO.

Commenting on the $5.1 million quarterly loss, Hunt said, "It isextremely important to put these numbers into context in light ofcurrent market conditions." The interim Grubb & Ellis CEO citedthe economic slowdown and "tightening credit conditions that havebrought the capital markets to a virtual halt." Before the slowdownin the commercial real estate markets began about a year ago, Huntsaid, "Grubb & Ellis and NNN Realty Advisors, like their peers,were benefiting from a robust commercial real estate and capitalmarkets environment."

Hunt pointed out that commercial real estate investment volumewas down 69% industry-wide in the first half of this year versuslast year, with cap rates rising, vacancies rising and softeningrental markets. Those conditions, he said, are likely to producesome forced asset sales, especially for owners who bought in thepast several years with high debt and overly optimisticexpectations.