The Grubb & Ellis merger with NNN Realty advisors has raised more than a few eyebrows this week. A traditional and well respected commercial services firm(G&E) announced a merger with fast growing and relatively young ( Founded in 1998) TIC specialists NNN Realty Advisors.

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Tax free exchanges and TIC property investments have been an extremely fast growing segments of the commercial real estate and investment businesses."? Most of NNN's business it appears is derived from selling a commercial"?real estate property in units"?as a security through securities licensed dealers."? There have been and continue to be many real estate companies and advisors selling TIC type transactions with their real estate licenses. There is great legal wrangling as to the validity of the real estate licensee being able to handle this type of transaction. The debate is a battle between two powerful groups, real estate agents, securities dealers and their attorneys. The ultimate winner may be determined by their respective"?lobbying power to influence legislation."?

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From my vantage point Grubb & Ellis definitely needed to grow to be able to survive in the increasingly competitive commercial space. On paper you could make a case for this merger working, but it will not be easy. This will be an interesting test of the management teams to delicately merge these two cultures. The companies are both"?touting the potential benefits and the cross selling opportunities. NNN shareholders will own approximately 59% and Grubb shareholders owning 41%. This as not a huge cash out for G&E so they must be betting on the future.

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What do you think of combining the two worlds of securities driven selling and traditional brokerage?"? Can these two pull it off?"? Will there be similar mergers on the way?