Gramercy Capital Corp.

Holliday and Mathias will remain as consultants to Gramercy through Sept. 30, 2009. Gramercy was unable to provide further comment or detail to GlobeSt.com prior to its conference call, which a spokesman says has not yet been scheduled. The spokesman says--in regards to replacements for Hughes' and Mathias' positions--that if there are any additional details or discussions to be provided, "they won't be until Gramercy's Q3 release and conference call."

The company's marketing, general and administrative, expenses include the consolidation of the expenses of its subsidiary GKK Manager LLC, the entity which manages and advises Gramercy. For the quarter ended Sept. 30, 2008, the company's MG&A included approximately $5.7 million of costs associated with Gramercy compared to $3.7 million in the prior year. This increase, according to a prepared statement, is primarily due to personnel hired in connection with the $3.3-billion AFR acquisition. That transaction doubled the company's size and diversified its asset base and income stream, as GlobeSt.com reported. It also added 29.2-million sf of commercial real estate to Gramercy's portfolio. Locally based Gramercy is externally-managed by GKK Manager LLC, which is a majority-owned subsidiary of SL Green Realty Corp.

According to a prepared statement, Cozzi brings to Gramercy "a wealth of relevant experience and a successful track record in the real estate finance sector." After three years at Goldman Sachs and three years as an investment officer for Starwood Mezzanine Investors and Starwood Opportunity Fund IV, he served from 1998 to 2007 in senior roles at iStar Financial Inc. He was named CIO of that firm in 2006. While at iStar Financial, Cozzi was responsible for the origination of structured financing transactions and he successfully closed over $3 billion of first mortgage, mezzanine and corporate finance investments. In early 2007 he joined Fortress Investment Group LLC, where he was managing director.

In a prepared statement, Holliday says that "in four years, Gramercy has grown from a boutique specialty lender to a more than $7 billion integrated commercial real estate finance and property investment firm. We are extremely pleased we've been able to attract Roger Cozzi, one of the sector's brightest young executives, to take over and lead the Company forward. The Board is confident that Roger is the right person to tackle the significant challenges that the industry faces in the current economic climate."

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Gramercy's Holliday Steps Down, Cozzi To Lead

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