0000905729-11-000080.txt : 20110425 0000905729-11-000080.hdr.sgml : 20110425 20110425112828 ACCESSION NUMBER: 0000905729-11-000080 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20110425 DATE AS OF CHANGE: 20110425 GROUP MEMBERS: C. MICHAEL KOJAIAN GROUP MEMBERS: KOJAIAN HOLDING LLC GROUP MEMBERS: KOJAIAN MANAGEMENT CORPORATION GROUP MEMBERS: KOJAIAN VENTURES, L.L.C. GROUP MEMBERS: KOJAIAN VENTURES-MM, INC. FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: KOJAIAN C MICHAEL CENTRAL INDEX KEY: 0001029460 FILING VALUES: FORM TYPE: SC 13D/A MAIL ADDRESS: STREET 1: 39400 WOODWARD AVENUE STREET 2: SUITE 250 CITY: BLOOMFIELD HILLS STATE: MI ZIP: 48304 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: GRUBB & ELLIS CO CENTRAL INDEX KEY: 0000216039 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531] IRS NUMBER: 941424307 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-32339 FILM NUMBER: 11776717 BUSINESS ADDRESS: STREET 1: 500 WEST MONROE STREET STREET 2: SUITE 2800 CITY: CHICAGO STATE: IL ZIP: 60661 BUSINESS PHONE: 3126986700 MAIL ADDRESS: STREET 1: 500 WEST MONROE STREET STREET 2: SUITE 2800 CITY: CHICAGO STATE: IL ZIP: 60661 SC 13D/A 1 kojaiansc13da22_042511.htm KOJAIAN SCHEDULE 13D/A#22 Kojaian SC 13D/A#22 - 04/25/11

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 22)

Grubb & Ellis Company


(Name of Issuer)

 

Common Stock, $0.01 par value


(Title of Class of Securities)

 

40009 52 0


(CUSIP Number)

 

C. Michael Kojaian
c/o Kojaian Ventures, L.L.C.
39400 Woodward Avenue, Suite 250
Bloomfield Hills, Michigan 48304
Telephone (248) 644-7600


(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)

 

April 22, 2011


(Date of Event Which Requires Filing of this Statement)

          If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box o.

(Continued on the following pages)
(Page 1 of 11 Pages)




CUSIP NO. 40009 52 0

13D

Page 2 of 11 Pages




1

NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Kojaian Holdings LLC



2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) x

 

 

(b) o



3

SEC USE ONLY



4

SOURCE OF FUNDS (See Instructions)

WC



5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

o



6

CITIZENSHIP OR PLACE OF ORGANIZATION

Michigan




NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

 

 

5,021,326

 


 


8

SHARED VOTING POWER

 

 

 

0

 


 


9

SOLE DISPOSITIVE POWER

 

 

 

5,021,326

 


 


10

SHARED DISPOSITIVE POWER

 

 

 

0



11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          5,021,326



12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES


o



13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

          7.2%



14

TYPE OF REPORTING PERSON

          OO




2


CUSIP NO. 40009 52 0

13D

Page 3 of 11 Pages




1

NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Kojaian Ventures, L.L.C.



2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) x

 

 

(b) o



3

SEC USE ONLY



4

SOURCE OF FUNDS (See Instructions)

Not applicable



5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

o



6

CITIZENSHIP OR PLACE OF ORGANIZATION

Michigan




NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

 

 

11,700,000

 


 


8

SHARED VOTING POWER

 

 

 

0

 


 


9

SOLE DISPOSITIVE POWER

 

 

 

11,700,000

 


 


10

SHARED DISPOSITIVE POWER

 

 

 

0



11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          11,700,000



12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES


o



13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

          16.7%



14

TYPE OF REPORTING PERSON

          OO




3


CUSIP NO. 40009 52 0

13D

Page 4 of 11 Pages




1

NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Kojaian Management Corporation



2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) x

 

 

(b) o



3

SEC USE ONLY



4

SOURCE OF FUNDS (See Instructions)

Not applicable



5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

o



6

CITIZENSHIP OR PLACE OF ORGANIZATION

Michigan




NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

 

 

11,081,926

 


 


8

SHARED VOTING POWER

 

 

 

0

 


 


9

SOLE DISPOSITIVE POWER

 

 

 

11,081,926

 


 


10

SHARED DISPOSITIVE POWER

 

 

 

0



11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          11,081,926



12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES


o



13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

          14.6%



14

TYPE OF REPORTING PERSON

          CO




4


CUSIP NO. 40009 52 0

13D

Page 5 of 11 Pages




1

NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

Kojaian Ventures-MM, Inc.



2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) x

 

 

(b) o



3

SEC USE ONLY



4

SOURCE OF FUNDS (See Instructions)

Not applicable



5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

o



6

CITIZENSHIP OR PLACE OF ORGANIZATION

Michigan




NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

 

 

11,700,000

 


 


8

SHARED VOTING POWER

 

 

 

0

 


 


9

SOLE DISPOSITIVE POWER

 

 

 

11,700,000

 


 


10

SHARED DISPOSITIVE POWER

 

 

 

0



11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          11,700,000



12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES


o



13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

          16.7%



14

TYPE OF REPORTING PERSON

          CO




5


CUSIP NO. 40009 52 0

13D

Page 6 of 11 Pages




1

NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

C. Michael Kojaian



2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

 

(a) x

 

 

(b) o



3

SEC USE ONLY



4

SOURCE OF FUNDS (See Instructions)

Not applicable



5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

o



6

CITIZENSHIP OR PLACE OF ORGANIZATION

United States of America




NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON WITH

7

SOLE VOTING POWER

 

 

 

11,826,283

 


 


8

SHARED VOTING POWER

 

 

 

11,081,926

 


 


9

SOLE DISPOSITIVE POWER

 

 

 

11,826,283

 


 


10

SHARED DISPOSITIVE POWER

 

 

 

11,081,926



11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

          22,908,209



12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES


o



13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

          30.1%



14

TYPE OF REPORTING PERSON

          IN




6


          This Amendment No. 22 (this "Amendment No. 22" or this "filing") amends in certain respects Amendment No. 1 to Schedule 13D filed by Mike Kojaian and C. Michael Kojaian dated February 13, 2001 ("Amendment No. 1"); Amendment No. 2 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, Kojaian Ventures, L.L.C., a Michigan limited liability company ("KV"), and Kojaian Ventures-MM, Inc., a Michigan corporation and managing member of KV ("KVMM") dated April 19, 2002 ("Amendment No. 2"); Amendment No. 3 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KV and KVMM dated May 16, 2002 ("Amendment No. 3"); Amendment No. 4 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KV and KVMM dated September 27, 2002 ("Amendment No. 4"); Amendment No. 5 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, Kojaian Holdings LLC, a Michigan limited liability company ("KH"), KV, KVMM dated May 9, 2003 ("Amendment No. 5"); Amendment No. 6 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KH, KV, and KVMM dated January 6, 2005 ("Amendment No. 6"); Amendment No. 7 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, Kojaian Management Corporation ("KMC"), KH, KV, and KVMM dated April 28, 2006 ("Amendment No. 7"); Amendment No. 8 to Schedule 13D filed by C. Michael Kojaian, KMC, KH, KV, and KVMM dated July 6, 2006 ("Amendment No. 8"); Amendment No. 9 to Schedule 13D filed by C. Michael Kojaian, KMC, KH, KV, and KVMM dated May 22, 2007 ("Amendment No. 9"); Amendment No. 10 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KMC, KH, KV, and KVMM dated September 7, 2007 ("Amendment No. 10"); Amendment No. 11 to Schedule 13D filed by Mike Kojaian and C. Michael Kojaian, KMC, KH, KV, and KVMM dated September 14, 2007 ("Amendment No. 11"); Amendment No. 12 to Schedule 13D filed by C. Michael Kojaian, KMC, KH, KV, and KVMM dated December 10, 2007 ("Amendment No. 12"); Amendment No. 13 to Schedule 13D filed by C. Michael Kojaian, KMC, KH, KV, and KVMM dated March 5, 2008 ("Amendment No. 13"); Amendment No. 14 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KMC, KH, KV, and KVMM dated June 16, 2008 ("Amendment No. 14"); Amendment No. 15 to Schedule 13D filed by C. Michael Kojaian, KMC, KH, KV, and KVMM dated August 22, 2008 ("Amendment No. 15"); Amendment No. 16 to Schedule 13D filed by C. Michael Kojaian, KMC, KH, KV, and KVMM dated September 3, 2008 ("Amendment No. 16"); Amendment No. 17 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KMC, KH, KV, and KVMM dated June 12, 2009 ("Amendment No. 17"); Amendment No. 18 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KMC, KH, KV, and KVMM dated October 2, 2009 ("Amendment No. 18"); Amendment No. 19 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KMC, KH, KV, and KVMM dated November 6, 2009 ("Amendment No. 19"); Amendment No. 20 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KMC, KH, KV, and KMM dated September 22, 2010 ("Amendment No. 20"); and Amendment No. 21 to Schedule 13D filed by Mike Kojaian, C. Michael Kojaian, KMC, KH, KV, and KMM dated February 28, 2011 ("Amendment No. 21") (collectively the "Previous Filings"). All items not reported in this Amendment No. 22 are herein incorporated by reference from the Previous Filings. To the extent any item is superseded by any later filing, the later filing is operative and controlling.

Item 1.

Security and Issuer

          The title of the class of equity securities to which this statement relates is the common stock, par value $0.01 per share (the "Common Stock") of Grubb & Ellis Company, a Delaware corporation (the "Company"). The address of the Company's principal executive offices is 1551 North Tustin Avenue, Suite 300, Santa Ana, California 92705.


7


Item 2.

Identity and Background

          This Amendment No. 22 is being filed by C. Michael Kojaian, KMC, KVMM, KV, and KH (collectively, the "Reporting Persons"). Item 2 of the Previous Filings is here incorporated by reference.

          During the last five years, none of the Reporting Persons has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). During the last five years, none of the Reporting Persons has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction which resulted in the Reporting Person being subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

Item 3.

Source and Amount of Funds or Other Consideration

          Not applicable.

Item 4.

Purpose of Transaction

          The Reporting Persons are filing this Amendment No. 22 to make public their reservation of rights as detailed in their letter to the Company dated April 22, 2011 (the "Letter"). The Reporting Persons wrote and delivered the Letter in their capacities as stockholders of the Company. The Letter relates to the Company's Form 8-K Current Report dated March 30, 2011, in which the Company filed copies of a commitment letter with Colony Capital Acquisitions, LLC ("Colony") and an exclusivity agreement with Colony. Such Form 8-K is here incorporated by reference. In the Letter, the Reporting Persons reserved their rights as shareholders, including without limitation their rights to support or oppose any proposed transaction, to solicit Company shareholders to support or oppose any transaction, to discuss a transaction with Colony, to sell or purchase and/or solicit or discuss the sale or purchase of Common Stock, and to submit competing proposals. The Reporting Persons also insisted that the Company respect their contractual rights. The Letter was not intended to communicate any plans or proposals that the Reporting Persons may have which relate to or would result in the occurrence any of the topics listed in Item 4 of Schedule 13D under the Securities Act of 1934. The foregoing brief description of the Letter does not purport to be a full discussion of the Letter and is qualified by the Letter itself, which is attached as Exhibit 2 to this Amendment No. 22.

          The Reporting Persons may from time to time in the future acquire or dispose of additional securities of the Company in open market or privately negotiated transactions, depending on market conditions and other considerations that the Reporting Persons deem relevant. As of the date of this filing, the Reporting Persons have no specific plans or proposals to acquire or dispose of securities of the Company. The Reporting Persons also reserve the right to take any and all actions with respect to their respective investments in the Company as they from time to time may determine in the future in their sole discretion.


8


Item 5.

Interests in Securities of the Issuer

          (a-b)          The total number of shares of Common Stock deemed to be beneficially owned by all of the Reporting Persons is 22,908,209, which represents approximately 30.1% of the outstanding shares of Common Stock. The direct beneficial owners of such shares are represented in the following table (each Reporting Person has or has the right to acquire sole voting and dispositive power over the listed shares):

 


Beneficial Owner

 


Shares  

 

Percentage of All
Outstanding Common Stock

 

Kojaian Holdings LLC (KH)

 

5,021,326

 

7.2%

 

Kojaian Ventures, L.L.C. (KV)

 

11,700,000

 

16.7%

 

C. Michael Kojaian

 

126,283

 

0.2%

 

Kojaian Management Corporation

 

6,060,600

 

8.0%

 

 

 

 

 

 

 

TOTAL

 

22,908,209

 

30.1%

          The 6,060,600 shares of Common Stock directly owned by KMC reported above assumes the conversion of 100,000 shares of Grubb & Ellis Company 12% cumulative participating perpetual convertible preferred stock, par value $0.01 per share (the "Convertible Stock") at a rate of 60.606 shares of Common Stock for each share of Convertible Preferred Stock.

          As the sole member of KH, KMC is the deemed beneficial owner of, and has sole voting and dispositive power over, the 5,021,326 shares of Common Stock directly owned by KH. These shares of Common Stock represent approximately 7.2% of the outstanding shares of Common Stock.

          As the manager member of KV, KVMM is the deemed beneficial owner of, and has sole voting and dispositive power over, the 11,700,000 shares of Common Stock directly owned by KV. These shares represent approximately 16.7% of the outstanding shares of Common Stock.

          As (i) a 50% shareholder of KMC, (ii) the sole shareholder of KVMM and (iii) a member (along with KVMM) of KV, C. Michael Kojaian is deemed to be the beneficial owner of the 16,721,326 shares of Common Stock directly owned by KH and KV and the 6,060,600 shares of Common Stock directly beneficially owned by KMC (assuming the conversion of the Convertible Stock as discussed above). These shares of Common Stock, combined with the 126,283 C. Michael Kojaian holds directly for a total of 22,908,209 shares of Common Stock, represent approximately 30.1% of the outstanding shares of Common Stock. Of such 22,908,209 shares of Common Stock, C. Michael Kojaian has sole voting and dispositive power over the 11,700,000 shares of Common Stock directly owned by KV and the 126,283 shares of Common Stock he directly owns and shared voting and dispositive power over the 5,021,326 shares of Common Stock directly owned by KH and the 6,060,600 shares directly owned by KMC.

          (c)          The Reporting Persons have purchased no shares of Common Stock since the filing of Amendment No. 21.

          (d)          Not applicable.


9


          (e)          Not applicable.

Item 6.

Contracts, Arrangements, Understandings, or Relationships with respect to Securities of the Issuer

          Item 6 of the Previous Filings is here incorporated by reference. Item 4 of this Amendment No. 22 is here incorporated by reference.

Item 7.

Material to Be Filed as Exhibits


Exhibit 1

Joint Filing Agreement dated April 25, 2011.

 

 

Exhibit 2

Letter to Grubb & Ellis Company dated April 22, 2011.

















10


SIGNATURES

          After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.


Dated:  April 25, 2011

 

/s/ C. Michael Kojaian


 

 

C. Michael Kojaian

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN HOLDINGS LLC

 

 

 

 

 

By:  Kojaian Management Corporation, its Sole Member

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, its Executive Vice President

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN MANAGEMENT CORPORATION

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, its Executive Vice President

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN VENTURES, L.L.C.

 

 

 

 

 

By:  Kojaian Ventures-MM, Inc., its Managing Member

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, President

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN VENTURES-MM, INC.

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, President


11

EX-1 2 kojaianex1_042511.htm KOJAIAN EXHIBIT 1 TO SCHEDULE 13D/A#22 Kojaian Exhibit 1 to SC 13D/A#22 - 04/25/11

EXHIBIT 1

JOINT FILING AGREEMENT

          Pursuant to Rule 13d-1(k) under the Securities Exchange Act of l934, as amended, the undersigned hereby agree to file with the Securities and Exchange Commission this Amendment No. 22 to Schedule 13D (the "Amendment"), with respect to the Common Stock of Grubb & Ellis Company. The undersigned agree that the Amendment will be filed on behalf of each and all of them. Each of the undersigned agrees that he or it is responsible for the accuracy and completeness of the information concerning him or it contained in the Amendment. This agreement may be executed in any number of counterparts, which taken together shall constitute one and the same document.


Dated:  April 25, 2011

 

/s/ C. Michael Kojaian


 

 

C. Michael Kojaian

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN HOLDINGS LLC

 

 

 

 

 

By:  Kojaian Management Corporation, its Sole Member

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, its Executive Vice President

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN MANAGEMENT CORPORATION

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, its Executive Vice President

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN VENTURES, L.L.C.

 

 

 

 

 

By:  Kojaian Ventures-MM, Inc., its Managing Member

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, President

 

 

 

 

 

 

Dated:  April 25, 2011

 

KOJAIAN VENTURES-MM, INC.

 

 

 

 

 

By

/s/ C. Michael Kojaian


 

 

 

C. Michael Kojaian, President

EX-2 3 kojaianex2_042511.htm KOJAIAN EXHIBIT 2 TO SCHEDULE 13D/A#22 Kojaian Exhibit 2 to SC 13D/A#22 - 04/25/11

EXHIBIT 2

Kojaian Ventures, L.L.C.
Kojaian Holdings LLC
Kojaian Management Corporation
C. Michael Kojaian
39400 N. Woodward Avenue, Suite 250
Bloomfield Hills, MI 48304-2876



April 22, 2011



Board of Directors
Grubb & Ellis Company
1551 North Tustin Avenue
Suite 300
Santa Ana, CA 92705

Gentlemen:

                    Kojaian Ventures, L.L.C., Kojaian Holdings LLC, Kojaian Management Corporation and I, as a group (together the "Kojaian Shareholders") collectively are the beneficial owners (as determined under SEC regulations, including shares issuable upon conversion of convertible securities and exercise of options) of more than 30% of the common stock of Grubb & Ellis Company (the "Company"). This letter is provided on behalf of the Kojaian Shareholders solely in our capacity as shareholders of the Company.

                    Reference is made to the Company's Form 8-K Current Report dated March 30, 2011, in which the Company reported and filed copies of a commitment letter between Colony Capital Acquisitions, LLC ("Colony") and the Company dated March 30, 2011 (the "Commitment Letter") and an Exclusivity Agreement between Colony and the Company dated March 30, 2011 (the "Exclusivity Agreement"). For personal reasons, I was unable to participate in the Board of Director's consideration of the Commitment Letter, the Exclusivity Agreement, or other agreements subsequently entered into pursuant to the Commitment Letter. The purpose of this letter is to clarify my position regarding these agreements.

                    In the Exclusivity Agreement, the Company agrees that it shall, and that it shall cause its directors to, for a period of sixty days, work exclusively with Colony and its representatives with respect to a potential Transaction and not to solicit or initiate or enter into any discussions or transactions with, reply to or encourage, or provide any information to any individual, corporation, partnership, or other entity or group (other than Colony) concerning the acquisition of the Company or any subsidiary or any equity interest therein or all or any substantial portion of any of their assets.




                    The Company is advised that the Kojaian Shareholders are not, and I do not consider myself personally in my capacity as a shareholder and as a representative of the Kojaian Shareholders to be, bound by the Exclusivity Agreement. The Kojaian Shareholders expressly reserve all rights as shareholders of the Company with respect to any transaction or proposed transaction with Colony or others. These rights include, but are not limited to:

 

The right to support or not support any proposed transaction.

 

The right to vote for or against a proposed transaction.

 

The right to solicit or encourage other Company shareholders to support or oppose a proposed transaction.

 

The right to discuss a proposed transaction directly with Colony, including, without limitation, to discuss or propose a transaction by the Kojaian Shareholders with or in collaboration with Colony.

 

The right to solicit or discuss the purchase or sale of, to purchase or sell, and/or to agree or commit to purchase or sell shares of the Company's common stock or preferred stock.

 

The right to submit competing proposals for transactions either before or during the market check period or "fiduciary out" described in the Commitment Letter or any future definitive agreement between the Company and Colony or any other party.

 

The right to collaborate with other parties to initiate, negotiate, propose and enter into agreements for transactions with the Company.

                    As the Company proceeds with its negotiation, execution and implementation of agreements for any future transaction with or proposed by or in connection with Colony, the Kojaian Shareholders expect and insist that the Company will fully respect and accommodate the rights of the Kojaian Shareholders, including those listed above and the rights of Kojaian investors relating to:

 

The Registration Rights Agreement dated April 28, 2006

 

Ownership of convertible preferred stock by Kojaian Management Corporation

                    The purpose of this letter is to highlight and reserve the rights of the Kojaian Shareholders as shareholders of the Company. It is not intended to communicate or suggest any plan or proposal by the Kojaian Shareholders, or any of them, with respect to any of the topics mentioned in this letter or any of the actions enumerated in Item 4 of Schedule 13D under the Securities Act of 1934.

                    On a personal note, I would like to add that I am fully mindful of my fiduciary duties as a director of the Company and I sincerely intend to faithfully and fully perform those duties. The Company must, in turn, acknowledge that my duties as a director will not limit the range and exercise of the rights of the Kojaian Shareholders as shareholders of the Company, and respect those rights.




 

Sincerely,

 

 

 

 

 

/s/ C. Michael Kojaian

 

C. Michael Kojaian
On behalf of each of the Kojaian Investors named above