5M-SF Contract Reflects Grubb & Ellis Strategy

Grubb & Ellis is targeting institutions, high-net-worth individuals and other property owners in a concerted effort to increase its market share of property and facilities management. As Hans Mumper, senior vice president and director of management services for Southern California, explained to GlobeSt.com when he was named to his management services post in the fall, many property owners these days are focusing their attention on building management in light of the economic downturn and changing market conditions. In addition to increasing its share of the property management business, the Grubb & Ellis strategy is also designed to integrate all of its service lines to be able to provide clients with a full spectrum of transaction services, corporate services, investment services, facilities and property management in all of the markets the company serves.

The Red Mountain portfolio is one of a number of contracts that Grubb & Ellis has won since it began its quest for a larger share of the property management pie. For example, it also recently landed a contract to provide property management services for 500,000 square feet of facilities operated by Poway, CA-based Sharp HealthCare.

Founded in 1999, Red Mountain owns a portfolio of big box and neighborhood retail centers as well as mixed-use assets, which are primarily located in California and Arizona. The portfolio also includes 11 properties spread across Utah, Montana, New Mexico, Tennessee, Kansas and Wisconsin.

Red Mountain formerly managed all of the property in-house, except for one center in Montana, which was managed by an affiliate of Grubb & Ellis. The Grubb & Ellis property management team for the Red Mountain Retail Group portfolio will be led by Mumper, who is based in the company's Downtown Los Angeles office.

Besides owning and operating centers, Red Mountain is also a developer. Among the projects it has under way is the 498,880-square-foot El Portal Entertainment Center in South Gate, CA. The regional entertainment and multimedia-themed shopping center will be anchored by Target, Ross and Regency Theaters as well as other entertainment and community gathering spaces.