The New York City-based Gramercy, a commercial real estatespecialty finance company, bought the half-interest from the GaleCo. and Principal Real Estate Investors. As reported byGlobeSt.com, Gale and PREI, back by SL Green Realty Corp.,bought the former AT&T campus from the telecom giant in May2005 in a sale-leaseback transaction for a reported $125 million,and in Novemberinked Sanofi-aventis to a full-complex lease after signing a leasetermination agreement with AT&T. Sanofi-aventis' move-in, aconsolidation of three locations, is under way and scheduled to becompleted by the end of this year.

According to details released by Gramercy Capital, the share isheld as a tenancy-in-common interest, with the remaining 50% heldas a TIC interest by SL Green. The new venture obtained a 10-year,$190-million mortgage from Goldman Sachs Mortgage Co., after havingpreviously retired a $91-million first mortgage that Gramercybought in March from Wachovia Bank. The effective interest rate isapproximately 5.75%, according to Gramercy officials, and thecompany invested some $23 million of equity in the venture,including the purchase price, transaction costs and future fundingrequirements.

"We continue to use our relationship network and our strategicalliance with SL Green to source and structure off-market,net-lease investments that provide steady earnings, long-termappreciation potential and corporate finance benefits for thecompany," says Gramercy Capital's Hugh Hall, whose company isexternally managed by GKK Manager LLC, a majority-owned subsidiaryof SL Green. "These investments generate significant organic equityfor reinvestment in our lending and net lease investmentactivities."