Grubb Gets Scrubbed
The Grubb & Ellis Apartment REIT is changing its name to Apartment Trust of America, effective January 1, 2011. What an awful, uncreative name. A better name would be the Legacy and Lawsuits Apartment REIT.
From what I have been able to extrapolate from various conversations is that the managers of the REIT terminated the REITs relationship with Grubb & Ellis due to poor sales, and are hoping that a new advisor and dealer manager will boost sales. Unfortunately, the change in advisor and dealer manager requires new selling agreements with broker dealers, and the REITs legacy assets and lawsuits relating to pending acquisitions will likely give broker dealers reason to pass on this deal.