The Depository Trust & Clearing Corporation (DTCC) announced today that Grubb & Ellis has completed system testing and has begun processing transactions on DTCC’s Alternative Investment Products (AIP) service for its two publicly registered, non-traded real estate investment trusts (REITs), Grubb & Ellis Apartment REIT, Inc. and Grubb & Ellis Healthcare REIT II, Inc. Grubb & Ellis worked closely with DTCC to prepare and test the system, and is the first non-traded REIT sponsor to utilize the AIP service.

The AIP service links global market participants, including broker/dealers, fund managers, administrators and custodians, providing an end-to-end processing solution for alternative investments such as hedge funds, funds of funds, private equity, non-traded REITs and limited partnerships.

Traditionally, alternative investments have been handled through hard copy, fax, email, phone calls and spreadsheets. This lack of automation and centralization prolongs the transaction process, making these methods inefficient and expensive. Leveraging DTCC’s infrastructure, the AIP service streamlines, automates and centralizes all the processes related to trade order initiation, money settlement and post-trade reporting, bringing significant operational efficiencies and transparency to the alternative investments community while facilitating market growth.

“We are very pleased to have Grubb & Ellis on board as our first non-traded REIT sponsor and we look forward to bringing additional partners onto the platform,” said Ann Bergin, managing director and general manager, DTCC Wealth Management Services. “As today’s investors continue to look for new ways to diversify their investment portfolios, our AIP service has become an attractive solution for accessing the non-traded REIT market, making it easier for REITs to standardize communication among their financial advisor partners and better serve investors.”

“As a leader in the non-traded REIT industry, Grubb & Ellis is committed to adopting the best practices and finest available technology to benefit our investors, their advisors and our broker-dealer partners,” said Tom D’Arcy, president and chief executive officer of Grubb & Ellis Company. “DTCC’s AIP system is a revolutionary step forward for our industry, and we couldn’t be more pleased to have assisted in its successful testing and being the first non-traded REITs to be rolled-out.”

Currently, close to 35 participants are actively testing DTCC’s AIP service; this includes transfer agents, fund administrators, broker/dealers and product sponsors.

The AIP service is offered by National Securities Clearing Corporation (NSCC), a subsidiary of DTCC.

About Non-Traded REITs

Non-traded REITs are common shares offered by a real estate company for investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks. Like other corporations, REITs can be publicly or privately held. Investors are typically drawn to non-traded REITs for their potential for steady income and general lack of volatility compared to publicly traded equities. According to research from Blue Vault Partners LLC, non-traded REITs are on track to raise $7 billion in 2010, a 17% increase over 2009.

About DTCC

DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$33.9 trillion. In 2009, DTCC settled nearly US$1.48 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas.

About Grubb & Ellis Company

Grubb & Ellis Company (NYSE: GBE) is one of the largest and most respected commercial real estate services and investment companies in the world. Our 6,000 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm’s transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment subsidiaries, the company is a leading sponsor of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including public non-traded real estate investment trusts (REITs), mutual funds and other real estate investment funds. For more information, visit www.grubb-ellis.com.

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