NEW YORK CITY–Gramercy Capital Corp. andpartner Garrison Investment Group closed on thepurchase of a 5.6-million-square-foot portfolio. The price was $485million on the asset, which is leased primarily to Bank ofAmerica. The seller is an affiliate of KBS RealEstate Investment Trust Inc.

The deal, announced in August, was funded on a 50/50-basis bythe two New York City-based partners with a combined equityinvestment of $141 million. Gramercy reports it funded its equitycontribution with $56 million in cash and the issuance of 6 millionshares of common stock valued at $15 million to KBS.

Commenting on the deal, Gramercy Capital CEO Gordon F.DuGan states, “The transaction allows Gramercy to deploy asignificant amount of capital into an attractive, high-yielding,net-lease opportunity. Furthermore, Garrison has been a tremendouspartner in closing the largest and most complicated deal in my24-year career.”