Document:

Exhibit 4.9

                               SECURITY AGREEMENT

         THIS  AGREEMENT is made on May 9 , 2003,  by and between  GRUBB & ELLIS
COMPANY,  a Delaware  corporation  ("Company"),  whose chief executive office is
located at 2215 Sanders Road, Suite 400, Northbrook, Illinois 60062, and KOJAIAN
FUNDING,  L.L.C.,  a Michigan  limited  liability  company,  ("Kojaian"),  whose
address is 39400 Woodward Avenue, Suite 250, Bloomfield Hills, Michigan 48304.

         RECITALS:

         A. Kojaian has loaned an amount equal to $4,000,000.00  (the "Loan") to
the Company pursuant to that certain Promissory Note, of even date herewith (the
"Promissory  Note"),  and as  further  evidenced  by  among  other  things,  UCC
financing statements executed in connection therewith.

         B.  Company has agreed to grant  Kojaian a security  interest to secure
the  indebtedness  and  liabilities  whatsoever  of Company,  whether  direct or
indirect,  absolute  or  contingent,  due or to  become  due,  now  existing  or
hereafter arising and howsoever evidenced under the Promissory Note.

         NOW, THEREFORE,  in consideration of the Recitals and the covenants and
agreements herein contained, the Company hereby agrees as follows:

         1.  SECURITY FOR  LIABILITIES.  As security for the payment of the Loan
including  any  renewals or  extensions  thereof from Company to Kojaian and all
obligations of any and every kind and nature heretofore,  now or hereafter owing
from  Company to  Kojaian,  however  incurred  or  evidenced,  whether  primary,
secondary,  contingent or otherwise, whether arising under this Agreement, under
any other security agreement(s), promissory note(s), guarantee(s),  mortgage(s),
lease(s),  instrument(s),  document(s),  contract(s),  letter(s)  of  credit  or
similar  agreement(s)  heretofore,  now or  hereafter  executed  by Company  and
delivered  to Kojaian,  or by  operation  of law plus all  interest,  reasonable
costs,  expenses and  reasonable  attorney fees which may be made or incurred by
Kojaian in the  disbursement,  administration  or collection of such obligations
and  in  the   protection,   maintenance   and  liquidation  of  the  Collateral
(hereinafter  collectively  called  "Liabilities"),  Company  hereby  grants  to
Kojaian a continuing security interest in the property and interests in property
described below (hereinafter referred to as the "Collateral").

         2.  COLLATERAL.  The  Collateral  covered by this  Agreement is all the
Company's property described below, which it now owns or shall hereafter acquire
or create  immediately upon the acquisition or creation  thereof,  and includes,
but is not limited to, any items listed on any schedule or list attached hereto:

         a. All personal property of the Company, including without limitation:

                  All Accounts,  Receivables, and all Goods whose sale, lease or
         other disposition has given rise to Accounts and have been returned to,
         or  repossessed  or stopped in transit by, the Company,  or rejected or
         refused by an Account Debtor.

                  All Chattel Paper,  including without  limitation,  Electronic
         Chattel Paper;  Documents;  Instruments,  including without limitation,
         Promissory  Notes;  Letter of Credit  Rights and proceeds of letters of
         credit;   Supporting   Obligations;   notes  secured  by  real  estate;
         Commercial

                                       1
<PAGE>

         Tort  Claims and General  Intangibles,  including  without  limitation,
         Payment Intangibles and Software.

                  All  Inventory,  including  without  limitation raw materials,
         work in process,  materials and finished goods leased by the Company as
         lessor or held for sale or lease or furnished or to be furnished  under
         contracts of service or used or consumed in a business.

                  All  Goods   (other   than   Inventory),   including   without
limitation, Equipment.

                  All Securities, Investment Property and Deposit Accounts.

         b. All  Proceeds  (whether  Cash  Proceeds or Noncash  Proceeds) of the
foregoing  property,  including without limitation proceeds of insurance payable
by reason of loss or damage to the foregoing  property and of eminent  domain or
condemnation awards.

         c. All products of,  additions and  accessions  to, and  substitutions,
betterments and replacements for the foregoing property.

         d. All sums at any time credited by or due from Company to Kojaian.

         e. All property in which the Company has an interest now or at any time
hereafter  coming  into the  possession  or under the  control  of Kojaian or in
transit by mail or carrier to or from Kojaian or in  possession  of or under the
control of any third party acting on Kojaian's  behalf without regard to whether
Kojaian received the same in pledge, for safekeeping, as agent for collection or
transmission or otherwise or whether Kojaian has conditionally released the same
(excluding, nevertheless, any of the foregoing property of the Company which now
or any time  hereafter is in  possession or control of Kojaian under any written
trust agreement wherein Kojaian is trustee and Company is trustor).

         Terms used and not otherwise  defined in this Agreement  shall have the
meaning given such terms in the Illinois  Uniform  Commercial Code. In the event
the meaning of any term  defined in the Illinois  Uniform Code is amended  after
the date of this  Agreement,  the meaning of such term as used in this Agreement
shall be that of the more  encompassing of: (i) the definition  contained in the
Illinois Uniform Commercial Code prior to the amendment, and (ii) the definition
contained in the Illinois Uniform Commercial Code after the amendment.

         3. 1.  PERFECTION  OF SECURITY  INTEREST.  Company  hereby  irrevocably
authorizes Kojaian to file financing  statement(s)  describing the Collateral in
all public offices deemed necessary by Kojaian, and to take any and all actions,
including,  without limitation,  filing all financing  statements,  continuation
financing  statements  and all  other  documents  that  Kojaian  may  reasonably
determine to be necessary to perfect and maintain  Kojaian's  security interests
in the Collateral. Company shall have possession of the Collateral, except where
expressly  otherwise  provided in this  Agreement  or where  Kojaian  chooses to
perfect its security  interest by possession,  whether or not in addition to the
filing of a financing  statement.  Where  Collateral  is in the  possession of a
third party,  Company  will join with  Kojaian in  notifying  the third party of
Kojaian's  security  interest and  obtaining an  acknowledgement  from the third
party that it is holding the Collateral for the benefit of Kojaian. Company will
cooperate  with  Kojaian  in  obtaining   control  with  respect  to  Collateral
consisting of Deposit Accounts, Investment Property, Letter-of-Credit Rights and
Electronic  Chattel  Paper.  Company will not create any Chattel  Paper  without
placing a legend on the Chattel  Paper  acceptable  to Kojaian  indicating  that
Kojaian has a security interest in the Chattel Paper. Company shall pay the cost
of filing or recording all financing  statement(s) and other documents.  Company
agrees to promptly  execute and  deliver to Kojaian  all  financing  statements,

                                       2
<PAGE>

continuation   financing   statements,   assignments,   certificates  of  title,
applications  for vehicle titles,  affidavits,  reports,  notices,  schedules of
Accounts,  designations  of  Inventory,  letters  of  authority  and  all  other
documents that Kojaian may reasonably request in form satisfactory to Kojaian to
perfect and maintain Kojaian's security interests in the Collateral. In order to
fully consummate all of the transactions  contemplated hereunder,  Company shall
make appropriate entries on its books and records disclosing  Kojaian's security
interests in the Collateral.

              4.  SUBORDINATION.  This Security  Agreement  and the  obligations
  herein are junior to and subordinate to the rights of lenders under, and cross
  defaulted  with,  that certain  Credit  Agreement  dated December 31, 2000 (as
  amended, restated, refinanced or other modified from time to time) between the
  Company and various  financial  institutions  (together with their  respective
  successors  and assigns,  the "First  Lenders") and Bank of America,  N.A., as
  administrative agent (in such capacity, the "Agent") (the "Credit Agreement").

         5. GUARANTEE.  The obligations of Company herein are guaranteed by that
certain  Guarantee and  Collateral  Agreement  dated of even date herewith among
Company, certain of Company's subsidiaries and Kojaian.

6. WARRANTIES AND REPRESENTATIONS.  Company warrants and represents,  except for
the rights of First  Lenders  under the Credit  Agreement  and those  exceptions
contained  therein  which  would not  create a  material  adverse  effect on the
security  granted  hereunder:  (a) except as may be  otherwise  disclosed  in an
attachment to this Agreement, Company has rights in or the power to transfer the
Collateral  and its  title to the  Collateral  is free and clear of all liens or
security  interests,  except Kojaian's and First Lenders' security interests and
except for "Permitted Liens" (as that term is defined in the Credit  Agreement),
(b) all Chattel Paper  constituting  Collateral  evidences a perfected  security
interest  in the goods  covered  by it free from all  other  liens and  security
interests,  (c) no  financing  statements,  other than that of Kojaian and First
Lenders and any other  holders of  Permitted  Lines,  are on file  covering  the
Collateral or any of it, (d) if Inventory is represented or covered by documents
of title,  Company is the owner of the documents  free of all liens and security
interests other than Kojaian's security interest and warehousemen's  charges, if
any, not  delinquent;  (e) the Company's exact legal name and the address of the
Company's chief executive office are as set forth in the first paragraph of this
Agreement;  (f) if the  Company is a  Registered  Organization,  the form of its
organization  and the State under which it is organized  are as set forth in the
first paragraph of this  Agreement;  (g) the Collateral,  wherever  located,  is
covered by this  Agreement;  (h) the amounts  represented by Company as owing to
Company in respect of each  Account,  Chattel Paper and General  Intangible  are
accurate  in all  material  respects;  (i) the  execution  and  delivery of this
Agreement  and any  instruments  evidencing  Liabilities  will not  violate  nor
constitute a breach of Company's Articles of Incorporation, By-Laws, Articles of
Organization,  Partnership Agreement, if any, or any agreement or restriction of
any type whatsoever to which Company is a party or is subject;  (j) there are no
actions or  proceedings  which are threatened or pending  against  Company which
might result in any material adverse change in Company's  financial condition or
which might materially affect any of Company's assets;  and (k) Company has duly
filed all federal,  state,  and other  governmental tax returns which Company is
required by law to file,  and will continue to file same during such time as any
of the  Liabilities  hereunder  remain  owing to  KOJAIAN,  and all  such  taxes
required to be paid have been paid, in full.

         7.  COVENANTS.  Company  covenants  and  agrees  that  while any of the
Liabilities  remain  unperformed  and  unpaid it will:  (a)  preserve  its legal
existence and not, in one transaction or a series of related transactions, merge
into or consolidate with any other entity,  or sell all or substantially  all of
its assets  without the prior  written  consent of  Kojaian;  (b) not change the
state where it is located;  (c) neither change its name, form of business entity
nor address of its chief executive office without giving

                                       3
<PAGE>

written  notice to  Kojaian  thereof  at least  thirty  (30)  days  prior to the
effective  date  of  such  change,   and  Company  agrees  that  all  documents,
instruments, and agreements demanded by Kojaian in response to such change shall
be prepared,  filed,  and recorded at Company's  expense  prior to the effective
date of such change; (d) not use the Collateral, nor permit the Collateral to be
used,  for any  unlawful  purpose,  whatever;  (e) maintain  the  Collateral  in
first-class  condition and repair;  and (f) indemnify and hold Kojaian  harmless
against  claims  of any  persons  or  entities  not a party  to  this  Agreement
concerning disputes arising over the Collateral.

         8.  INSURANCE,  TAXES,  ETC.  Company  has  the  risk  of  loss  of the
Collateral.  Company  shall:  (a) pay promptly all taxes,  levies,  assessments,
judgments,  and  charges  of any kind upon or  relating  to the  Collateral,  to
Company's  business,  and to  Company's  ownership  or use of any of its assets,
income, or gross receipts;  (b) at its own expense, keep and maintain all of the
Collateral  insured against loss or damage by fire,  theft,  explosion and other
risks in such amounts, with such companies, under such policies and in such form
as shall be reasonably  satisfactory to Kojaian,  which policies shall expressly
provide  that loss  thereunder  shall be payable to Kojaian as its  interest may
appear  (and  Kojaian  shall have a security  interest  in the  proceeds of such
insurance  and may apply any such  proceeds  which may be  received by it toward
payment of the Liabilities,  whether or not due, in such order of application as
Kojaian may determine);  and (c) maintain at its own expense  commercial general
liability and property  damage  insurance in such amounts,  with such companies,
under such  policies  and in such form as shall be  reasonably  satisfactory  to
Kojaian,  and, upon Kojaian's request,  shall furnish Kojaian with such policies
and evidence of payment of premiums  thereon.  If Company at any time  hereafter
should fail to obtain or maintain any of the policies  required above or pay any
premium in whole or in part relating thereto, or shall fail to pay any such tax,
assessment,   levy,  or  charge  or  to  discharge  any  such  lien,  claim,  or
encumbrance,  then  Kojaian,  without  waiving or releasing  any  obligation  or
default of Company  hereunder,  may at any time hereafter (but shall be under no
obligation  to do so) make such  payment or obtain such  discharge or obtain and
maintain such policies of insurance and pay such premiums,  and take such action
with  respect  thereto as Kojaian  deems  advisable.  All sums so  disbursed  by
Kojaian,  including reasonable attorney fees, court costs,  expenses,  and other
charges relating thereto, shall be part of the Liabilities,  secured hereby, and
payable  upon  demand  together  with  interest at the then  applicable  default
interest rate payable in connection  with any of the  Liabilities  from the date
when advanced until paid.

         9. COLLECTION OF ACCOUNTS. Kojaian conditionally authorizes and permits
Company to collect  Accounts from debtors.  This  privilege may be terminated by
Kojaian at any time after an Event of Default hereunder upon written notice from
Kojaian,  and upon mailing such notice Kojaian shall be entitled to and have all
of the ownership, title, rights, securities and guarantees of Company in respect
to Accounts,  and in respect to the property  evidenced  thereby,  including the
right of stoppage in  transit,  and Kojaian  shall have the right to enforce the
Company's  rights against the account debtors and obligors.  Thereafter  Company
will  receive  all  payments  on  Account as agent of and for  Kojaian  and will
transmit to Kojaian, on the day of receipt thereof, all original checks, drafts,
acceptances,  notes and other  evidence of payment  received in payment of or on
account of Accounts,  including all cash moneys  similarly  received by Company.
Until such delivery,  Company shall keep all such remittances separate and apart
from Company's own funds,  capable of identification as the property of Kojaian,
and shall hold the same in trust for  Kojaian.  All items or accounts  which are
delivered  by Company  to  Kojaian  on  account  of  partial or full  payment or
otherwise as proceeds of any of the Collateral  shall be deposited to the credit
of a deposit account (herein called the "Collateral Deposit Account") of Company
with Kojaian, as security for payment of the Liabilities.  Company shall have no
right to withdraw any funds deposited in the Collateral Deposit Account. Kojaian
may from time to time, at its discretion, and shall upon request of Company made
not more than once in a week, apply all or any of the then balance, representing
collected  funds  in the  Collateral  Deposit  Account,  toward  payment  of the
Liabilities,

                                       4
<PAGE>

whether or not then due, in such order of  application as Kojaian may determine,
and Kojaian may,  from time to time,  in its  discretion,  release all or any of
such balance to Company. Company, if in default in the performance of any of the
provisions of this Agreement  beyond  applicable  notice and cure periods,  upon
demand,  will open all mail only in the presence of a representative of Kojaian,
who may take  therefrom any remittance on Accounts in which Kojaian shall have a
security interest.  Kojaian or its  representatives is authorized to endorse, in
the name of Company,  any item howsoever  received by Kojaian,  representing any
payment on or other proceeds of any of the  Collateral,  and may endorse or sign
the name of Company to Accounts,  invoices,  assignments,  financing statements,
notices to debtors,  bills of lading,  storage receipts, or other instruments or
documents in respect to Accounts or the property  covered  thereby  requested by
Kojaian.  Company will  promptly  give  Kojaian  copies of all  Accounts,  to be
accompanied  by such  information  and by such  documents  or copies  thereof as
Kojaian may require. Company will maintain such records with respect to Accounts
and the conduct and  operation of its business as Kojaian may request,  and will
furnish  Kojaian all  information  with  respect to Accounts and the conduct and
operation of its business,  including balance sheets,  operating  statements and
other financial information, as Kojaian may request.

         10. CARE, CUSTODY, AND DEALINGS WITH COLLATERAL.  Kojaian shall have no
liability  to  Company  with  respect  to  Kojaian's  care  and  custody  of any
Collateral in Kojaian's  possession  and shall have no duty to sell,  surrender,
collect or protect the same or to preserve  rights  against  prior parties or to
take any action with respect thereto beyond the custody thereof, exercising that
reasonable  custodial care which it would exercise in holding similar  interests
for its  own  account.  Kojaian  shall  only be  liable  for its  acts of  gross
negligence.  Kojaian is hereby  authorized  and  empowered to take the following
steps,  either prior or  subsequent to default  hereunder:  (a) to deal directly
with issuers, entities, owners, transfer agents and custodians to effect changes
in the  registered  name of any such  Collateral,  to effect  substitutions  and
replacements  thereof  necessitated  by  any  reason  (including  by  reason  of
recapitalization,  merger,  acquisition,  debt  restructuring or otherwise),  to
execute and deliver  receipts  therefor and to take possession  thereof;  (b) to
communicate and deal directly with payors of instruments  (including securities,
promissory  notes,  letters  of  credit,  certificates  of  deposits  and  other
instruments), which may be payable to or for the benefit of Company at any time,
with respect to the terms of payment  thereof;  (c) in the  Company's  name,  to
agree to any extension of payment,  any  substitution of Collateral or any other
action or event with respect to the  Collateral;  (d) to notify parties who have
an  obligation  to  pay  or  deliver  anything  of  value  (including  money  or
securities)  with respect to the  Collateral to pay or deliver the same directly
to Kojaian on behalf of Company and to receive and receipt for any such  payment
or delivery in Company's name as an addition to the Collateral; (e) to surrender
renewable  certificates or any other instruments or securities forming a portion
of  the  Collateral  which  may  permit  or  require   reissuance,   renewal  or
substitution  at any time and to  immediately  take  possession  of and  receive
directly from the issuer, maker or other obligor, the substituted  instrument or
securities; (f) to exercise any right which Company may have with respect to any
portion of the Collateral, including rights to seek and receive information with
respect  thereto;  and (g) to do or perform any other act and to enjoy all other
benefits with respect to the Collateral as Company could in its own name.

         11. DISPOSITION OF COLLATERAL.  Kojaian does not authorize, and Company
agrees not to make any sales or leases of any of the Collateral,  license any of
the Collateral,  or grant any other security  interest in any of the Collateral;
provided,  however,  that until such time as Kojaian shall notify Company of the
revocation of such power and authority and after and Event of Default hereunder,
Company (a) may only in the ordinary course of its business, at its own expense,
sell, lease or furnish under contracts of service any of the inventory  normally
held by Company for such  purpose;  (b) may use and  consume any raw  materials,
work in process or materials,  the use and  consumption of which is necessary in
order to carry on Company's business; and (c) will at its own expense,  endeavor
to  collect,  as and when  due,  all  accounts  due with  respect  to any of the
Collateral, including the taking of such action with respect to

                                       5
<PAGE>

such  collection  as Kojaian may  reasonably  request or, in the absence of such
request,  as  Company  may deem  advisable.  A sale in the  ordinary  course  of
business does not include a transfer in partial or total satisfaction of a debt.
To the extent  Company uses any proceeds of any of the  Liabilities  to purchase
Collateral,   Company's   repayment  of  the   Liabilities   shall  apply  on  a
"first-in-first-out"  basis  so that  the  portion  of the  Liabilities  used to
purchase  a  particular  item  of  Collateral   shall  be  deemed  paid  in  the
chronological order the Company purchased the Collateral.

         12.  INFORMATION.  Company  shall  permit  Kojaian or its  agents  upon
reasonable  request to have access to, and to inspect,  all the Collateral  (and
Company's  other  assets,  if any) and may from  time to time  verify  Accounts,
inspect,  check, make copies of, or extracts from the books,  records, and files
of Company,  and Company will make same available at any time for such purposes.
In addition,  Company shall promptly supply Kojaian with such other financial or
other information  concerning its affairs and assets as Kojaian may request from
time to time.

         13.  EVENTS OF DEFAULT.  The Company,  without  notice or demand of any
kind, shall be in default under this Agreement upon the occurrence of any of the
following events (each an "Event of Default"):

                  a. NONPAYMENT OF OBLIGATIONS.  Any amount due and owing on the
         Liabilities or any fees due Kojaian hereunder,  any reasonable expenses
         incurred  by Kojaian  hereunder  or any and all other  liabilities  and
         obligations of the Company to Kojaian,  howsoever  created,  arising or
         evidenced,  and  howsoever  owned,  held or  acquired,  whether  now or
         hereafter  existing,  whether  now  due or to  become  due,  direct  or
         indirect,  absolute or contingent,  and whether several, joint or joint
         and several,  whether by its terms or as otherwise  provided herein, is
         not paid when due.  Notwithstanding the foregoing, in the event Company
         elects to defer interest  payments as provided in the Note it shall not
         be considered an Event of Default hereunder so long as Company provides
         Kojaian with five (5) days prior written  notice of its intention to do
         so.

                  b.  MISREPRESENTATION.  Any written warranty,  representation,
         certificate or statement in this Agreement,  any loan document executed
         in conjunction with the Liabilities (the "Loan Documents") or any other
         agreement  with Kojaian or otherwise  made by or for the Company or any
         other party  obligated on any of the Liabilities  ("Obligor")  shall be
         false when made or at any time, or if any  financial  data or any other
         information  now or  hereafter  furnished to Kojaian by or on behalf of
         any Obligor  shall prove to be false,  inaccurate  or misleading in any
         material respect.

                  c.  NONPERFORMANCE.  Any  failure to perform or default in the
         performance of any covenant,  condition or agreement  contained in this
         Agreement, or in the Loan Documents or any other agreement with Kojaian
         and the continuation thereof for thirty (30) days beyond the date due.

                  d. DEFAULT UNDER LOAN DOCUMENTS.  Any default under any of the
         other Loan Documents, all of which covenants, conditions and agreements
         contained therein are hereby  incorporated in this Agreement by express
         reference.

                  e. DEFAULT UNDER OTHER  AGREEMENTS.  Except to the extent that
         the same  would not  constitute  an Event of  Default  under the Credit
         Agreement,  any  default in the payment of  principal,  interest or any
         other sum for any other  obligation  beyond any period of notice and/or
         grace provided with respect  thereto or in the performance of any other
         term,  condition  or  covenant  contained  in  any  material  agreement
         (including, but not limited to any capital or

                                       6
<PAGE>

         operating  lease or any  agreement  in  connection  with  the  deferred
         purchase price of property) under which any such obligation is created,
         the  effect of which  default  is to cause or permit the holder of such
         obligation  (or the other party to such other  agreement) to cause such
         obligation to become due prior to its stated maturity or terminate such
         other agreement.

                  f.  ASSIGNMENT FOR CREDITORS.  Any Obligor makes an assignment
         for the  benefit of  creditors,  fails to pay, or admits in writing its
         inability  to pay its  debts as they  mature;  or if a  trustee  of any
         substantial  part  of the  assets  of any  Obligor  is  applied  for or
         appointed,  and in the  case  of  such  trustee  being  appointed  in a
         proceeding brought against such Obligor,  the Obligor, by any action or
         failure to act indicates its approval of,  consent to, or  acquiescence
         in such  appointment  and such  appointment  is not vacated,  stayed on
         appeal or otherwise  shall not have ceased to continue in effect within
         thirty (30) days after the date of such appointment.

                  g.  BANKRUPTCY.  Any  proceeding  involving  any  Obligor,  is
         commenced   by  or  against   such   Obligor   under  any   bankruptcy,
         reorganization,   arrangement,   insolvency,   readjustment   of  debt,
         dissolution or liquidation law or statute of the federal  government or
         any  state  government,  and in the case of any such  proceeding  being
         instituted  against such Obligor,  (i) such  Obligor,  by any action or
         failure to act  indicates its approval of,  consent to or  acquiescence
         therein,  or (ii) an order shall be entered  approving  the petition in
         such  proceedings  and such order is not  vacated,  stayed on appeal or
         otherwise  shall not have ceased to continue  in effect  within  thirty
         (30) days after the entry thereof.

                  h.  JUDGMENTS.  Except to the  extent  that the same would not
         constitute an Event of Default under the Credit Agreement, the entry of
         any judgment,  decree, levy, attachment,  garnishment or other process,
         or the filing of any  judgment  lien  against any Obligor  which is not
         fully  covered by  insurance,  and such judgment or other process shall
         not have been,  within  thirty  (30) days from the entry  thereof,  (i)
         bonded over to the satisfaction of Kojaian and appealed,  (ii) vacated,
         or (iii) discharged.

                  i. COLLATERAL IMPAIRMENT.  The entry of any judgment,  decree,
         levy,  attachment,  garnishment or other process,  or the filing of any
         lien against any collateral  securing any of the Liabilities that would
         result in a material adverse effect on the Company and such judgment or
         other  process  shall not have been,  within  thirty (30) days from the
         entry  thereof,  (i) bonded  over to the  satisfaction  of Kojaian  and
         appealed,  (ii)  vacated,  or (iii)  discharged,  or the  loss,  theft,
         destruction,  seizure or forfeiture,  or the occurrence of any material
         deterioration  or impairment of any of any  collateral  securing any of
         the  Liabilities  any material  decline or depreciation in the value or
         market price thereof (whether actual or reasonably anticipated),  which
         causes any  collateral  securing  any of the  Liabilities,  in the sole
         opinion of Kojaian acting in good faith, to become unsatisfactory as to
         value or character,  or which causes Kojaian to reasonably believe that
         it is insecure and that the likelihood for repayment of the Liabilities
         is or will soon be impaired,  time being of the  essence.  The cause of
         such deterioration,  impairment, decline or depreciation shall include,
         but is not  limited to, the failure by the Company to do any act deemed
         reasonably  necessary by Kojaian to preserve and maintain the value and
         collectability of any collateral securing any of the Liabilities.

                  j.  MATERIAL  ADVERSE  EVENT.  The  occurrence of any material
         adverse event which causes a change in the  financial  condition of any
         Obligor,  or which would have a material adverse effect on the business
         of any Obligor.

                                       7
<PAGE>

                  k. MATERIAL ADVERSE  FINANCIAL  CHANGE.  The  determination by
         Kojaian that a material  adverse  change has occurred in the  financial
         condition  of any  Obligor  from the  condition  set  forth in the most
         recent  financial  statement of such Obligor  furnished to Kojaian,  or
         from the financial condition of such Obligor most recently disclosed to
         Kojaian in any manner.

         14. REMEDIES UPON DEFAULT. Upon the occurrence of any Event of Default,
any and all of the Liabilities may  (notwithstanding  any provisions thereof and
unless  otherwise  provided  in  any  loan  agreement  executed  in  conjunction
therewith),  at the option of Kojaian, and without demand or notice of any kind,
be declared and thereupon shall  immediately  become due and payable and Kojaian
may exercise  from time to time any rights and remedies  including  the right to
immediate  possession of the Collateral  available to it under  applicable  law.
Kojaian may directly  contact third parties and enforce  against them all rights
which arise with respect to the Collateral and to which Company or Kojaian would
be entitled.  Company waives any right it may have to require  Kojaian to pursue
any third  person for any of the  Liabilities.  Kojaian  shall have the right to
hold any property then in, upon or in any way  affiliated to said  Collateral at
the time of repossession  even though not covered by this Agreement until return
is demanded in writing by the Company. Company agrees, upon the occurrence of an
Event of Default,  to assemble  at its  expense all the  Collateral  and make it
available to Kojaian at a convenient place acceptable to Kojaian. Company agrees
to pay all  reasonable  costs of Kojaian of collection of the  Liabilities,  and
enforcement of rights hereunder,  including  reasonable  attorney fees and legal
expenses,  including  participation  in Bankruptcy  proceedings,  and expense of
locating  the  Collateral  and  expenses  of any  repairs to any realty or other
property  to which any of the  Collateral  may be affixed  or be a part.  If any
notification  of intended  disposition  of any of the  Collateral is required by
law, such notification, if mailed, shall be deemed reasonably and properly given
if sent at least  ten (10)  days  before  such  disposition,  postage  pre-paid,
addressed  to the  Company  either at the  address  shown  above or at any other
address of the  Company  appearing  on the  records of Kojaian and to such other
parties as may be required by the  Illinois  Uniform  Commercial  Code.  Company
acknowledges  that  Kojaian  may be unable to effect a public sale of all or any
portion of the Collateral because of certain legal and/or practical restrictions
and provisions which may be applicable to the Collateral and, therefore,  may be
compelled  to  resort  to one or more  private  sales to a  restricted  group of
offerees and purchasers. After an Event of Default, Company consents to any such
private sale so made even though at places and upon terms less favorable than if
the  Collateral  were sold at public sale.  Kojaian  shall have no obligation to
clean-up or otherwise  prepare the Collateral for sale.  Kojaian may comply with
any  applicable   state  or  federal  law  requirements  in  connection  with  a
disposition of the Collateral and compliance will not be considered to adversely
affect the commercial reasonableness of any sale of the Collateral.  Kojaian may
specifically disclaim any warranties as to the Collateral.  If Kojaian sells any
of the  Collateral  upon  credit,  Company will be credited  only with  payments
actually  made  by  the  purchaser,  received  by  Kojaian  and  applied  to the
indebtedness  of the purchaser.  In the event the purchaser fails to pay for the
Collateral,  Kojaian may resell the Collateral and the Company shall be credited
with the  proceeds  of sale.  Kojaian  shall have no  obligation  to marshal any
assets in favor of the  Company.  Company  waives the right to jury trial in any
proceeding  instituted with respect to the  Collateral.  Out of the net proceeds
from  sale or  disposition  of the  Collateral,  Kojaian  shall  retain  all the
Liabilities  then  owing  to it and the  actual  cost of  collection  (including
reasonable  attorney  fees) and  shall  tender  any  excess  to  Company  or its
successors or assigns. If the Collateral shall be insufficient to pay the entire
Liabilities,  Company shall pay to Kojaian the resulting deficiency upon demand.
Company  expressly waives any and all claims of any nature,  kind or description
which it has or may hereafter have against  Kojaian or its  representatives,  by
reason of taking,  selling or  collecting  any portion of the  Collateral in the
course of exercising its remedies hereunder. Company consents to releases of the
Collateral  at any  time  (including  prior  to  default)  and to  sales  of the
Collateral in groups,  parcels or portions,  or as an entirety, as Kojaian shall
deem appropriate. Company expressly absolves Kojaian from any loss or decline in
market  value  of any  Collateral  by  reason  of delay  in the  enforcement  or
assertion  or  nonenforcement  of any rights or remedies  under this  Agreement.

                                       8
<PAGE>

Company agrees that Kojaian  shall,  upon the occurrence of an Event of Default,
have the right to peacefully  retake any of the  collateral.  Company waives any
right it may have in such instance to a judicial hearing prior to such retaking.

         15.  GENERAL.  Time  shall  be  deemed  of the  very  essence  of  this
Agreement.  Except as  otherwise  defined in this  Agreement,  all terms in this
Agreement shall have the meanings  provided by the Illinois  Uniform  Commercial
Code.  Kojaian shall be deemed to have exercised  reasonable care in the custody
and preservation of any Collateral in its possession if it takes such action for
that  purpose as Company  requests in writing,  but failure of Kojaian to comply
with any such  request  shall not of itself  be  deemed a  failure  to  exercise
reasonable  care,  and failure of Kojaian to preserve or protect any rights with
respect  to such  Collateral  against  any prior  parties  or to do any act with
respect to the preservation of such Collateral not so requested by Company shall
not be  deemed  a  failure  to  exercise  reasonable  care  in the  custody  and
preservation of such  Collateral.  This Agreement has been delivered in Illinois
and shall be  construed  in  accordance  with the laws of the State of Illinois.
Whenever possible, each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under  applicable  law, but if any provision
of this Agreement  shall be prohibited by or invalid under  applicable law, such
provision shall be ineffective to the extent of such  prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of this Agreement. The rights and privileges of Kojaian hereunder shall inure to
the benefit of its successors and assigns,  and this Agreement  shall be binding
on all heirs,  personal  representatives,  assigns and successors of Company and
all  persons  who become  bound as a debtor to this  Agreement.  Company  hereby
expressly authorizes and appoints Kojaian to act as its attorney-in-fact for the
sole purpose of executing  any and all financing  statements or other  documents
deemed necessary to perfect the security interest herein contemplated.

         16. NO  WAIVER.  Any delay on the part of  Kojaian  in  exercising  any
power,  privilege or right hereunder,  or under any other instrument executed by
Company to Kojaian in connection herewith shall not operate as a waiver thereof,
and no single or partial exercise  thereof,  or the exercise of any other power,
privilege or right shall  preclude  other or further  exercise  thereof,  or the
exercise of any other power,  privilege  or right.  The waiver of Kojaian of any
default by Company shall not constitute a waiver of any subsequent defaults, but
shall be restricted to the default so waived. All rights, remedies and powers of
Kojaian  hereunder  are  irrevocable  and  cumulative,  and not  alternative  or
exclusive,  and shall be in addition to all rights,  remedies,  and powers given
hereunder  or in or by  any  other  instruments,  or  by  the  Illinois  Uniform
Commercial  Code,  or any laws now  existing or hereafter  enacted.  The Company
acknowledges that this is the entire agreement between the parties except to the
extent  that  writings  signed  by the  party  to be  charged  are  specifically
incorporated  herein by reference  either in this Agreement or in such writings,
and acknowledges receipt of a true and complete copy of this Agreement.

                                       9
<PAGE>

         IN WITNESS WHEREOF,  this Security Agreement was executed and delivered
by the undersigned on the date stated in the first paragraph above.

Witnesses:                               COMPANY:

                                         GRUBB & ELLIS COMPANY

                                         By:
-----------------------------------          -----------------------------------

                                         Its:
-----------------------------------          -----------------------------------

                                         KOJAIAN:

                                         KOJAIAN FUNDING, L.L.C., , A MICHIGAN
                                         LIMITED LIABILITY COMPANY

                                         By: KOJAIAN VENTURES,  L.L.C., a
                                             Michigan limited liability company,
                                             Member

                                             By: KOJAIAN VENTURES-MM, INC.,
                                                 a Michigan corporation

                                                 By:
-----------------------------------                  ---------------------------
                                                     C. Michael Kojaian
-----------------------------------                  Its:  Manager

                                      -10-Exhibit 4.10

                             SUBORDINATION AGREEMENT

         THIS SUBORDINATION AGREEMENT (this "AGREEMENT") dated as of May 9, 2003
is given by the  undersigned  in favor of Bank of  America,  N.A.,  as Agent (as
defined below), and the Lender Parties (as defined below).

         WHEREAS,  Grubb & Ellis  Company  (the  "COMPANY"),  various  financial
institutions  (together  with  their  respective  successors  and  assigns,  the
"LENDERS") and Bank of America, N.A., as administrative agent (in such capacity,
the "AGENT"), have entered into a Credit Agreement dated as of December 31, 2000
(as amended,  restated,  refinanced or otherwise modified from time to time, the
"CREDIT  AGREEMENT")  pursuant to which the Lenders have made, and may from time
to time hereafter make, loans and other financial  accommodations to the Company
from time to time;

         WHEREAS,  the Company may from time to time enter into Hedge Agreements
(as defined in the Guaranty and Collateral  Agreement  referred to in the Credit
Agreement) with one or more Lenders or affiliates thereof (the Lenders, together
with all  affiliates  thereof  which are  parties to Hedge  Agreements  with the
Company, are collectively called the "LENDER PARTIES");

         WHEREAS, the Company has issued a promissory note dated the date hereof
in the original principal amount of $4,000,000 (as amended or otherwise modified
from time to time, the "NOTE") to the undersigned;

         WHEREAS,  all obligations of the Company to the  undersigned  under the
Note are to be  subordinated  to the obligations of the Company to the Agent and
the Lender Parties as more fully set forth below;

         NOW, THEREFORE, for good and valuable consideration, receipt whereof is
hereby acknowledged, the undersigned agrees as follows:

1.       All  obligations  of  the  Company,   howsoever  created,   arising  or
         evidenced,  whether direct or indirect,  absolute or contingent, now or
         hereafter existing,  or due or to become due, are called "LIABILITIES".
         All  Liabilities  to the  Agent  and the  Lender  Parties  under  or in
         connection with the Credit  Agreement are called "SENIOR  LIABILITIES";
         and all Liabilities to the undersigned  under or in connection with the
         Note are called "JUNIOR LIABILITIES"; it being expressly understood and
         agreed  that the  term  "Senior  Liabilities",  as used  herein,  shall
         include,  without  limitation,  any and all interest accruing on any of
         the  Senior  Liabilities  after  the  commencement  of any  proceedings
         referred to in SECTION 3,  notwithstanding any provision or rule of law
         which might  restrict the rights of the Agent or any Lender  Party,  as
         against the Company or anyone else, to collect such interest.

2.       Except  as  expressly  otherwise  provided  herein  or as the Agent may
         hereafter  otherwise  expressly consent in writing,  the payment of all
         Junior  Liabilities  shall be postponed and subordinated to the payment
         in full in cash of all  Senior  Liabilities,  and no  payment  or other
         distribution  whatsoever in respect of any Junior  Liabilities shall be
         made, nor shall any property or assets of the Company be applied to the
         purchase or other  acquisition or retirement of any Junior  Liabilities
         until all Senior  Liabilities have been paid in full in cash;  PROVIDED
         that, so long as no Default or Event of Default  exists or would result

<PAGE>

         therefrom,  the  Company  may  make  regularly-scheduled   payments  of
         interest on the Junior Liabilities as such payments become due.

3.       In  the   event   of  any   dissolution,   winding   up,   liquidation,
         reorganization or other similar  proceeding  relating to the Company or
         to its  creditors,  as such, or to its property  (whether  voluntary or
         involuntary, partial or complete, and whether in bankruptcy, insolvency
         or receivership, or upon an assignment for the benefit of creditors, or
         any other marshalling of the assets and liabilities of the Company,  or
         any sale of all or substantially  all of the assets of the Company,  or
         otherwise),  all Senior Liabilities shall first be paid in full in cash
         before the  undersigned  shall be entitled to receive and to retain any
         payment or  distribution  in respect of any of the Junior  Liabilities,
         and, in order to implement the foregoing,

         a.       the undersigned  shall cause all payments and distributions of
                  any kind or character in respect of the Junior  Liabilities to
                  which  the  undersigned   would  be  entitled  if  the  Junior
                  Liabilities were not  subordinated  pursuant to this Agreement
                  to be made directly to the Agent,

         b.       the undersigned  shall promptly file a claim or claims, in the
                  form  required in such  proceeding,  for the full  outstanding
                  amount of the Junior  Liabilities,  and shall cause said claim
                  or  claims  to  be  approved   and  all   payments  and  other
                  distributions  in respect  thereof to be made  directly to the
                  Agent and

         c.       the undersigned  hereby irrevocably agrees that the Agent may,
                  at its  sole  discretion,  in the name of the  undersigned  or
                  otherwise,  demand, sue for, collect,  receive and receipt for
                  any and all  such  payments  or  distributions,  and  file and
                  prove,  and  vote or  consent  in any  such  proceedings  with
                  respect to, any and all claims of the undersigned  relating to
                  the Junior Liabilities.

4.       If the  undersigned  receives any payment or other  distribution of any
         kind or character from the Company or from any other source  whatsoever
         in respect of any of the Junior  Liabilities,  other than as  expressly
         permitted  by the  terms  of this  Agreement,  such  payment  or  other
         distribution  shall be  received  in trust for the Agent and the Lender
         Parties and promptly turned over by the  undersigned to the Agent.  The
         undersigned  will  cause to be clearly  inserted  in the Note or in any
         other  promissory note or other  instrument which at any time evidences
         any of the  Junior  Liabilities  a  statement  to the  effect  that the
         payment  thereof is  subordinated  in accordance with the terms of this
         Agreement.  The  undersigned  will execute  such  further  documents or
         instruments  and take such further  action as the Agent may  reasonably
         from time to time request to carry out the intent of this Agreement.

5.       All payments and distributions  received by the Agent in respect of the
         Junior  Liabilities,  to the extent received in or converted into cash,
         may be  applied  by the  Agent  first  to the  payment  of any  and all
         expenses  (including  reasonable  attorneys'  fees and charges) paid or
         incurred by the Agent in enforcing  this Agreement or in endeavoring to
         collect or realize upon any of the Junior  Liabilities  or any security
         therefor,  and  any  balance  thereof  shall,  solely  as  between  the
         undersigned and the Agent, be applied by the Agent, in such

                                       2
<PAGE>

         order of application as the Agent may from time to time select,  toward
         the payment of the Senior Liabilities remaining unpaid; but, as between
         the Company and its creditors,  no such payment or  distribution of any
         kind or character  shall be deemed to be a payment or  distribution  in
         respect  of the  Senior  Liabilities;  and,  notwithstanding  any  such
         payment or distribution  received by the Agent in respect of the Junior
         Liabilities  and so  applied  by the Agent  toward  the  payment of the
         Senior  Liabilities,  the  undersigned  shall be subrogated to the then
         existing rights of the Agent and Lender Parties,  if any, in respect of
         the Senior  Liabilities  only at such time as this Agreement shall have
         been  discontinued and the Senior  Liabilities  shall have been finally
         paid in full in cash.

6.       The undersigned hereby waives:

         a.       notice of  acceptance by the Agent or any Lender Party of this
                  Agreement;

         b.       notice of the existence or creation or  non-payment  of all or
                  any of the Senior Liabilities; and

         c.       all diligence in  collection  or protection of or  realization
                  upon the Senior  Liabilities  or any  thereof or any  security
                  therefor.

7.       The  undersigned  will not,  without the prior  written  consent of the
         Agent:

         a.       cancel,  waive,  forgive,  transfer  or assign,  or attempt to
                  enforce or collect,  or subordinate to any  Liabilities  other
                  than the Senior  Liabilities,  any Junior  Liabilities  or any
                  rights in respect thereof;

         b.       take any action to foreclose upon, or exercise any other right
                  with   respect  to,  any   collateral   securing   the  Junior
                  Liabilities; or

         c.       commence,  or join with any other creditor in commencing,  any
                  bankruptcy,   reorganization  or  insolvency  proceeding  with
                  respect to the Company.

8.       This  Agreement  shall in all  respects be a continuing  agreement  and
         shall  remain  in  full  force  and  effect  (notwithstanding,  without
         limitation,  the  dissolution of the undersigned or that at any time or
         from time to time all  Senior  Liabilities  may have been paid in full)
         until all Senior  Liabilities  shall have been  finally paid in full in
         cash and all Commitments  under and as defined in the Credit  Agreement
         shall have terminated.

9.       The Agent or any  Lender  Party  may,  from  time to time,  at its sole
         discretion  and without notice to the  undersigned,  take any or all of
         the following actions:

         a.       retain or obtain  security  interest in any property to secure
                  any of the Senior Liabilities,

         b.       retain or obtain the primary or  secondary  obligation  of any
                  other  obligor or obligors  with  respect to any of the Senior
                  Liabilities,

                                       3
<PAGE>

         c.       extend or renew for one or more periods (whether or not longer
                  than the original period), alter or exchange any of the Senior
                  Liabilities,  or release or compromise  any  obligation of any
                  nature  of any  obligor  with  respect  to  any of the  Senior
                  Liabilities, and

         d.       release its  security  interest in, or  surrender,  release or
                  permit any  substitution  or exchange  for, all or any part of
                  any property securing any of the Senior Liabilities, or extend
                  or renew for one or more  periods  (whether or not longer than
                  the original period) or release, compromise, alter or exchange
                  any  obligation  of any nature of any obligor  with respect to
                  any such property.

10.      Any  Lender  Party  may,  from  time to  time,  without  notice  to the
         undersigned,  assign  or  transfer  its  interest  in any or all of the
         Senior  Liabilities;   and,  notwithstanding  any  such  assignment  or
         transfer or any subsequent  assignment or transfer thereof, such Senior
         Liabilities shall be and remain Senior  Liabilities for the purposes of
         this  Agreement,   and  every  immediate  and  successive  assignee  or
         transferee of any of the Senior  Liabilities or of any interest therein
         shall,  to the extent of the interest of such assignee or transferee in
         the Senior  Liabilities,  be entitled to the benefits of this Agreement
         to the same extent as the applicable assignor or transferor.

11.      Neither  the Agent nor any  Lender  Party  shall be  prejudiced  in its
         rights under this Agreement by any act or failure to act of the Company
         or  the  undersigned,  or  any  noncompliance  of  the  Company  or the
         undersigned  with  any  agreement  or  obligation,  regardless  of  any
         knowledge  thereof which the Agent or any Lender Party may have or with
         which the Agent or any Lender  Party may be  charged;  and no action of
         the Agent or any  Lender  Party  permitted  hereunder  shall in any way
         affect or impair the  rights of the Agent or any  Lender  Party and the
         obligations of the undersigned under this Agreement.

12.      No delay on the part of the Agent or any Lender  Party in the  exercise
         of any right or remedy shall operate as a waiver thereof, and no single
         or partial  exercise  by the Agent or any Lender  Party of any right or
         remedy shall preclude other or further exercise thereof or the exercise
         of any other right or remedy;  nor shall any  modification or waiver of
         any provision of this Agreement be binding upon the Agent or any Lender
         Party  except  as  expressly  set forth in a writing  duly  signed  and
         delivered on behalf of the Agent.

13.      This  Agreement  shall be  binding  upon the  undersigned  and upon the
         successors and assigns of the undersigned; and all references herein to
         the Company and to the  undersigned,  respectively,  shall be deemed to
         include any successor or assign to such entity.

14.      This  Agreement  shall be construed in accordance  with and governed by
         the laws of the State of Illinois  applicable to contracts  made and to
         be  performed  entirely  within  such  State.  Wherever  possible  each
         provision of this  Agreement  shall be interpreted in such manner as to
         be effective  and valid under  applicable  law, but if any provision of
         this  Agreement  shall be prohibited by or invalid under such law, such
         provision  shall be  ineffective  to the extent of such  prohibition or
         invalidity, without invalidating the remainder of such provision or the
         remaining provisions of this Agreement.

                                       4
<PAGE>

15.      The undersigned  (and, by accepting the benefits hereof,  the Agent and
         each Lender Party) expressly waives any right to a trial by jury in any
         action or  proceeding  to  enforce  or defend  any  rights  under  this
         Agreement  or under any  amendment,  instrument,  document or agreement
         delivered  or  which  may in the  future  be  delivered  in  connection
         herewith  or  arising  from  any  banking   relationship   existing  in
         connection  with this  Agreement  and  agrees  that any such  action or
         proceeding shall be tried before a court and not before a jury.

       IN WITNESS WHEREOF, this Agreement has been delivered as of the day first
above written.

                                     KOJAIAN FUNDING, L.L.C., a Michigan limited
                                     liability company

                                     By: KOJAIAN VENTURES, L.L.C., a Michigan
                                         limited liability company, Member

                                         By: KOJAIAN VENTURES-MM, INC.,
                                             a Michigan corporation

                                             By: -----------------------------
                                                 C. Michael Kojaian, Manager

                                       5
<PAGE>

       The  Company  hereby  acknowledges  receipt  of a copy  of the  foregoing
Subordination Agreement, waives notice of acceptance thereof by the Agent or any
Lender Party,  and agrees to be bound by the terms and  provisions  thereof,  to
make no payments or distributions  contrary to the terms and provisions thereof,
and to do every other act and thing  necessary or  appropriate to carry out such
terms and provisions.

Dated: May 9, 2003                        GRUBB & ELLIS COMPANY

                                          By:
                                              ----------------------------------

                                          Title:
                                                 -------------------------------

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]