NNN DURHAM OFFICE v. GRUBB & ELLIS CO.

No. COA17-607.

820 S.E.2d 109 (2018)

NNN DURHAM OFFICE PORTFOLIO 1, LLC; et al., Plaintiffs, v. GRUBB & ELLIS COMPANY; Grubb & Ellis Realty Investors, LLC; Grubb & Ellis Securities, Inc.; NNN Durham Office Portfolio, LLC; and NNN Realty Advisors, Inc., Defendants.

Court of Appeals of North Carolina.

Filed: September 4, 2018.


Attorney(s) appearing for the Case

Stark Law Group, PLLC, Chapel Hill, by Thomas H. Stark and Seth A. Neyhart, for Plaintiff-Appellants.

Parker Poe Adams & Bernstein LLP, Raleigh, by Charles E. Raynal, IV, Jamie S. Schwedler, and Catherine R.L. Lawson, for Defendant-Appellees Grubb & Ellis Company and Grubb & Ellis Securities, Inc.

Harris Sarratt & Hodges, LLP, Raleigh, by John L. Sarratt, for Defendant-Appellees Grubb & Ellis Realty Investors, LLC, NNN Durham Office Portfolio, LLC and NNN Realty Advisors, Inc.

Pnery Riemann, PLLC, Raleigh, by J. Anthony Penry for Appellant — NNN Durham Office Portfolio 1, LLC, et al.

North Carolina Department of Secretary of State, by Enforcement Attorney Colin M. Miller, for amici curiae, the North Carolina Secretary of State and the North American Securities Administration Association, Inc.


I. Summary

Plaintiffs are entities and individuals who invested in a commercial real property transaction. Defendants are entities who marketed the investment and managed the property.

Years later, when the parties lost one of their main tenants and the real property struggled to generate sufficient income to meet...

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