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.
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