Talk of the sale of Grubb & Ellis to Colony Capital LLC, a Los Angeles-based hedge fund manager, circled on Friday.

Grubb & Ellis Co. (NYSE:GBE)  announced in March that is it had hired San Francisco-based investment banking firm JMP Securities to explore strategic alternatives for the company, including a potential sale or merger, provides the latest sign of changes rippling through the CRE brokerage services market.

Grubb then struck a potentially lifesaving $18 million financing deal in late March with Colony Capital LLC, a Los Angeles-based hedge fund manager.

That deal gave Colony—led by billionaire real estate investor Tom Barrack—a 60-day exclusivity period to consider a larger strategic transaction with Grubb, whose stock has been battered by the commercial real estate downturn as well as an ill-fated combination with Santa Ana-based NNN Realty Advisors in 2007.

The exclusivity period ended in May.  As a result, Grubb actively engaged in discussions with additional parties, while continuing discussions with Colony.