Gramercy may lose 195 properties to lenders

TRD New York /
May.May 09, 2011 03:50 PM

A portfolio of 195 properties is falling out of Gramercy Capital’s grasp after the real estate investment trust failed to pay off $790 million in loans, the company announced today. According to Bloomberg News, lenders SL Green, Goldman Sachs Mortgage, Citicorp North America and KBS Debt Holdings “may immediately seek to exercise available remedies, which will likely include attempting to foreclose on all or substantially all the collateral,” Gramercy said in a statement. The move comes as analysts say lenders are increasingly switching gears from the so-called extend and pretend strategy to taking back control and unloading their distressed assets. The Gramercy portfolio, part of its Gramercy Realty arm, is comprised of a $240.5 million mortgage and $549.7 million in senior and junior mezzanine loans. Gramercy is an offshoot of SL Green, which created it in 2004 to expand its structure financing lending division on a national level. SL Green, which is still Gramercy’s largest shareholder, struck a deal late last year to buy $390.8 million worth of New York City real estate investments from the company, including a 100 percent leasehold on the Lipstick Building at 885 Third Avenue and stakes in 2 Herald Square and 292 Madison Avenue. That deal is separate from the portfolio now facing foreclosure. [Bloomberg]


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
902 Drew Street and 400 East 58th Street (Google Maps)

New York’s multifamily sales improve in Q3

New York’s multifamily sales improve in Q3
SL Green CEO Marc Holliday with 410 Tenth Avenue, One Vanderbilt and 126 Nassau Street (SL Green, Google Maps, Wikimedia, iStock)

SL Green’s lament: Office comeback “always right around the corner”

SL Green’s lament: Office comeback “always right around the corner”
Four New York Plaza (Photo via Hines)

Four New York Plaza office tower hits the market

Four New York Plaza office tower hits the market
SL Green CEO Marc Holiday and 420 Lexington Avenue with Scabby the Rat (Getty; Google; SL Green)

Peace prevails: SL Green, Local 79 settle dispute over protests

Peace prevails: SL Green, Local 79 settle dispute over protests
SL Green CEO Marc Holiday and 420 Lexington Avenue with Scabby the Rat (Getty; Google; Sl Green)

SL Green claims “saliva-spewing” picketers may be spreading Covid

SL Green claims “saliva-spewing” picketers may be spreading Covid
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...