November 9, 2009 (FinancialWire) — Commercial real estate services and investment firm Grubb & Ellis Co. (NYSE: GBE) has closed a $90 million offering of 900,000 shares of a new issuance of 12% cumulative participating perpetual convertible preferred stock.

The company estimates that the proceeds from the offering were around $85 million after deducting estimated offering expenses and giving effect to the conversion of the $5 million of subordinated debt provided by an affiliate of the company’s largest stockholder.

Grubb & Ellis plans to use the proceeds to repay in full its credit facility at the agreed reduced principal amount equal to around 65 percent of the principal amount outstanding under the facility. The balance of the offering proceeds will be used for general working capital purposes.

The company has also granted the initial purchaser and placement agent a 45-day option to purchase up to an additional 100,000 shares of preferred stock.

Santa Ana, California-based Grubb & Ellis employs 6,000 people in more than 130 company-owned and affiliate offices The firm offers real estate transaction, management, consulting and investment services. Through its investment subsidiaries, the company is a sponsor of real estate investment programs serving individuals and institutions.

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