SANTA ANA, CA - Grubb & Ellis Apartment REIT, Inc. announced that it has completed the purchase of the property management organization Mission Residential Management, LLC. With this acquisition, the Company will take over the management of approximately 13,000 apartment units located in North Carolina, Georgia, Florida, Tennessee, Texas and Utah.
Source: Grubb & Ellis Apartment REIT
"This acquisition marks a substantial step in the Company's long-term strategic plan to become a fully self-managed entity. It provides us the platform to manage our owned properties at a substantially reduced cost in comparison to what we currently pay third party vendors. We believe this will increase bottom line income and enhance shareholder value," said Stanley J. Olander, Chairman and CEO of the Company.
The Company also announced it has appointed Realty Capital Securities, Inc. as the successor dealer manager for the distribution of securities in its current "best efforts" stock offering. "Realty Capital Securities is currently raising between 15 and 20 percent of the capital for the non-traded REIT industry. We believe their marketing efforts will result in a sales increase of the Company's stock," Mr. Olander stated further.
The new dealer management agreement with Realty Capital Securities will take effect after the termination of the existing agreement with Grubb and Ellis Securities, Inc. Earlier this week, Grubb & Ellis Securities gave the Company notice that it is terminating its dealer management agreement with the Company on December 31, 2010. Until the termination of the dealer manager agreement with Grubb & Ellis Securities, Grubb & Ellis Securities will remain the exclusive dealer manager for the Company. "Our Company has had an excellent relationship with Grubb & Ellis and its affiliates for many years, and we are confident that they will work with us through the transition in the same professional manner that has made them an industry leader," said Mr. Olander.
Additionally, the Company announced it intends to enter into a new advisory agreement with an advisor entity owned by American Realty Capital, LLC and ROC REIT Advisors, LLC upon the termination of the existing advisory agreement with Grubb & Ellis Apartment REIT Advisor, LLC, which is expected to occur on December 31, 2010. In conjunction with the termination, the Company intends to change its name to "Apartment Trust of America, Inc." American Realty Capital is an affiliate of Realty Capital Securities.