Gramercy Makes a Nearly $85M Investment

NEW YORK CITY-Gramercy Capital Corp., which since its initial public offering has originated or invested in $422 million of financings, invested in an $84.7-million loan secured by a blanket first mortgage on 32 separate office and warehouse/distribution facilities. The properties comprise 1.9 million rentable sf and one 22-acre land parcel and are located in urban centers in Florida, Tennessee, North Carolina and Georgia. Hugh Hall, Gramercy COO, tells GlobeSt.com, “In 2005, Gramercy intends to expand its bridge lending business and continue its national expansion.”

This is just the latest in the firm’s major investments. In November, the firm closed a $40.5-million first mortgage loan to entities sponsored by Forest City Ratner Cos. for the first phase of the $2.5-billion Atlantic Yards project.

In December, Gramercy originated subordinated participation interests totaling $35 million in a $145-million loan secured by a first mortgage against a 296,235-sf, class A office building in Washington, DC. Also in December, the REIT exercised its option to increase by $100 million to $350 million the commitment amount of a repurchase agreement previously entered into with Wachovia Capital Markets LLC. In August, Gramercy had closed three credit facilities with Wachovia or one or more of its affiliates. In late July, the REIT had an IPO of 12.5 million common shares, raising $187.5 million.