Grubb & Ellis Prices IPO

Grubb & Ellis Realty Advisors, Northbrook, Ill., has priced an initial public offering of approximately 20.8 million units at $6 per unit, for expected total proceeds of about $106 million after underwriting discount and commissions.Each unit consists of one share of common stock of the company, an affiliate of Grubb & Ellis Co., and two warrants that give the holder the right to buy one share per warrant at a price of $5 each. In a filing with the Securities and Exchange Commission, Grubb & Ellis Realty Advisors reported that it will focus primarily on industrial and office property and assets. The company said it will concentrate on secondary and tertiary geographic markets, as well as the suburbs close to major metropolitan markets, believing that these markets offer opportunities to buy underperforming properties that can be repositioned. Deutsche Bank Securities, the underwriter of the offering, has an option to buy up to another 3.125 million units from the company to cover any overallotments. The units began trading Feb. 28 on the American Stock Exchange under the symbol GLA.U.