Loan servicer C-III Capital Partners has committed to put $10 million into commercial real estate services firm Grubb & Ellis Co. by investing in a line of credit issued earlier this year by Colony Capital.

Colony issued Grubb & Ellis an $18 million LOC in March just days after the latter announced it was seeking strategic alternatives. A 60-day negotiating period expired without Colony making an additional investment.

The new deal calls for C-III to purchase $4 million of the Colony facility as part of the $10 million investment, with the remainder going to expand the LOC. Both Colony and C-III are now significant stakeholders in Grubb & Ellis.

C-III, which is part of Island Capital Group, is a primary and special loan servicer, and also provides loan origination, title services, investment management and principal investment activities. In August, C-III acquired the special servicing business of JER Partners.

Grubb & Ellis was represented by JMP Securities, the investment banker it hired in March to explore sale or merger alternatives.

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