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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	June 26, 2006
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  	G REIT, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Maryland
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  	0-50261
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  	52-2362509
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	1551 N. Tustin Avenue, Suite 200, Santa Ana, California
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  	92705
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
  	(Zip Code)
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  	Registrant&#146;s telephone number, including area code:
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  	877-888-7348
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
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  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 1.01 Entry into a Material Definitive Agreement.
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  On June 26, 2006, GREIT-Hawthorne Plaza, LP, a wholly-owned subsidiary of G REIT, Inc., entered into a binding Agreement for Purchase and Sale of Real Property and Escrow Instructions (the "Agreement") for the sale of the Hawthorne Plaza property, located in San Francisco, California, to TMG Partners, an unaffiliated third party.  Pursuant to the terms of the Agreement, the purchase price for the property is $127,000,000 with the closing subject to certain agreed upon conditions. We anticipate closing to occur in the third quarter of 2006 as provided for under the Agreement. However, there can be no assurance that we will be able to complete the disposition of the Hawthorne Plaza property.
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	G REIT, Inc.
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  <I>
  	June 29, 2006
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  	By:
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  <I>
  	/s/ Scott D. Peters
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  <I>
  	Name: Scott D. Peters
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  <I>
  	Title: Chief Executive Officer and President
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_13463.htm", "description": "LIVE FILING", "secsgml_size_bytes": 8909}]
metadata_filer: {"company-data": {"conformed-name": "G REIT INC", "cik": "0001164246", "assigned-sic": "6798", "irs-number": "522362509", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-50261", "film-number": "06934706"}, "business-address": {"street1": "1551 N TUSTIN AVE", "street2": "STE 200", "city": "SANTA ANA", "state": "CA", "zip": "92705", "phone": "714-667-8252"}, "mail-address": {"street1": "1551 N TUSTIN AVE", "street2": "STE 200", "city": "SANTA ANA", "state": "CA", "zip": "92705"}}
text: G REIT, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  June 26, 2006
  G REIT, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Maryland
  0-50261
  52-2362509
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  1551 N. Tustin Avenue, Suite 200, Santa Ana, California
  92705
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  877-888-7348
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  On June 26, 2006, GREIT-Hawthorne Plaza, LP, a wholly-owned subsidiary of G REIT, Inc., entered into a binding Agreement for Purchase and Sale of Real Property and Escrow Instructions (the "Agreement") for the sale of the Hawthorne Plaza property, located in San Francisco, California, to TMG Partners, an unaffiliated third party.  Pursuant to the terms of the Agreement, the purchase price for the property is $127,000,000 with the closing subject to certain agreed upon conditions. We anticipate closing to occur in the third quarter of 2006 as provided for under the Agreement. However, there can be no assurance that we will be able to complete the disposition of the Hawthorne Plaza property.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  G REIT, Inc.
  June 29, 2006
  By:
  /s/ Scott D. Peters
  Name: Scott D. Peters
  Title: Chief Executive Officer and President