Gramercy may lose 195 properties to lenders

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
106 Spring Street with SL Green's Marc Holliday of SL Green and Paceline Equity Partners' Sam Loughlin (Google Maps, iStock)
One of Soho’s priciest retail spaces sells at UCC foreclosure auction
One of Soho’s priciest retail spaces sells at UCC foreclosure auction
SL Green's Marc Holliday and Brookfield Asset Management's Bruce Flatt with Tower 46. (SL Green, Brookfield)
SL Green to sell its 25% stake in Tower 46 to Brookfield
SL Green to sell its 25% stake in Tower 46 to Brookfield
SL Green CEO Marc Holliday with 11 Madison Avenue and 100 Park Avenue (SL Green, Google Maps/Illustration by Alexis Manrodt for The Real Deal)
SL Green sees improved “market vibe,” office return in “a blink of an eye”
SL Green sees improved “market vibe,” office return in “a blink of an eye”
From left: 11 Madison Avenue, Beam Suntory CEO Albert Baladi and SL Green CEO Marc Holliday (Photos via Beam Suntory; SL Green)
Beam Suntory will move HQ to 11 Madison Ave from Chicago
Beam Suntory will move HQ to 11 Madison Ave from Chicago
From left: Isaac Zion with JMC Holdings' Matthew Cassin (left) and David Taylor (right) (Photos via SL Green; JMC)
Former SL Green exec Isaac Zion joins Acram Group
Former SL Green exec Isaac Zion joins Acram Group
arrow_forward_ios

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

Loading...