Griffin-American Healthcare Trust, Inc.

The board of directors for Grubb & Ellis Healthcare REIT II, Inc. determined that it was in the best interest of the REIT to transition advisory and dealer manager duties performed by affiliates of Grubb & Ellis Company to American Healthcare Investors, LLC and Griffin Capital Corporation, who will serve as co-sponsors of the REIT.  Grubb & Ellis Healthcare REIT II will change its name to Griffin-American Healthcare Trust, Inc.   The REIT will remain externally advised per this convoluted paragraph:

As a result of the co-sponsorship arrangement, Griffin-American Healthcare REIT Advisor, LLC (“Griffin-American Advisor”), an affiliate of Griffin Capital, will serve as our new advisor, and will delegate advisory duties to Griffin-American Healthcare REIT Sub-Advisor, LLC (“Griffin-American Sub-Advisor”), a sub-advisor jointly owned by Griffin Capital and American Healthcare Investors. Griffin Capital Securities, Inc. (“Griffin Securities”), an affiliate of Griffin Capital, will serve as our new dealer-manager. We are not affiliated with Griffin Capital, Griffin-American Advisor or Griffin Securities; however, we are affiliated with Griffin-American Sub-Advisor and American Healthcare Investors(.)

I recommend reading today's 8-K filing that describes the transaction and rational behind it in more detail. 

Can't sponsors get more creative than automatically resorting to using "American" in their name.  Including "American" somewhere in the name does not give a deal or a sponsor additional credibility.  Credibility is earned over time through performance, not through what a company calls itself or its deals.  Why don't sponsors just come out with the BFDE (Best F*c%&ng Deal Ever) REIT, because that is what I believe is being implied anytime "American" is used in a title.  (And, isn't there already a similar sounding non-traded REIT in the marketplace, American Realty Captial Healthcare Trust?)

The winners in this deal, long-term, are the principals of Griffin Capital and American Healthcare Investors, LLC, but this is always the case.  This transaction is a coup for Griffin Capital and its principal Kevin Shields, as Grubb & Ellis Healthcare REIT II has been raising about ten times more equity per month than Griffin Capital's non-traded REIT.  I can almost hear Griffin's Shields paraphrasing Charlie Sheen, "Winner, winner chicken dinner.  Winner, winner Shields dinner."