Grubb & Ellis Co. owed $27.3 million on its loan fromKojaian Capital, LLC and was obligated to pay back $6 million ofthat through March 2005. In addition, the company's $4-millioncredit line from Kojaian Funding, LLC came due July 15.

In addition to the $25-million loan from Deutsche Bank, thecompany tapped its cash reserves for $7.6 million to pay offKojaian. The remaining $15 million from Deutsche Bank is a line ofcredit. The new loan and credit line comes with a three-year term,and is interest-only for the first two years.

"We believe that this new credit facility, which extends theterm of the credit by two and one half years, is the result ofGrubb & Ellis' improved financial condition and provides thecompany with the ability to invest our cash flow into our coretransaction and management services businesses," says executivevice president and chief financial officer Brian Parker.