NEW YORK CITY-Gramercy Capital Corp. transferred 317 properties Thursday to KBS Debt Holdings as part of an agreement to settle $549.7 million in defaulted mezzanine loans.
As GlobeSt.com reported, the mezzanine loans came due in May, along with a $240.5 million mortgage loan, following multiple extensions on the maturity date. Goldman Sachs Mortgage Co., Citicorp North America and KBS Debt Holdings--an affiliate of which is taking ownership of the bulk of Gramercy Realty’s portfolio--held the senior and junior mezzanine loans in question.
Gramercy Capital will retain ownership of 58 properties and will continue to manage the transferred properties through December 31, 2013 for a yearly fee of $10 million as part of the agreement. KBS will acquire any and all remaining Gramercy Realty properties on December 15, 2011.
Gramercy Capital and KBS were unable to return calls to GlobeSt.com in time for publication.
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