Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the debt and equity markets.)

SANTA ANA, CA-G REIT, a specialty REIT advised by Grubb & Ellis subsidiary Triple Net Properties that owns buildings occupied by government tenants, intends to enter into a liquidating trust on Jan. 22 to wind up the company’s affairs and liquidate its assets. The specialty REIT, which was incorporated in 2001, has sold a large portion of its assets in the past two years as part of a long-range liquidation plan and expects to dispose of its six remaining investments this year, according to its public filings.

“Although we can provide no assurances, we currently expect to sell all of our assets by March 31, 2008 and anticipate completing our plan of liquidation by June 30, 2008,” it states in one of its recent filings. As of Sept. 30, G REIT owned interests in six properties totaling 1.6 million sf, with 49.2% of that space occupied by government-related tenants.

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

The idea behind G REIT is that government-oriented tenants provide a stable source of rent and, when they grow, are likely to expand within the same buildings they already occupy. G REIT acquired all of its properties separately from Triple Net, but Triple Net acts as adviser to the REIT and manages the latter’s day-to-day operations. Triple Net became a wholly owned indirect subsidiary of Grubb & Ellis with the recent merger of NNN Realty Advisors and Grubb & Ellis.

The G REIT liquidation has involved high-profile office building sales in a number of markets, including a sale last year in which the REIT disposed of the 573,000-sf One World Trade Center office complex in Long Beach for $148.9 million and a deal in August in which the Santa Ana-based firm sold its 211,000-sf Madrona Buildings office complex in Torrance for $52.5 million. G REIT’s liquidation is similar to that of another specialty REIT called T REIT that was advised by Triple Net.

T REIT was formed in 1998 to invest in office, retail, industrial and service properties in states that do not have state income taxes in order to take advantage of greater economic growth that was anticipated in those states. Both were established as nontraded REITs, so-called because their shares do not trade publicly but are owned by shareholders who must meet certain qualifications to own the stock.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.