Overall, DuGan said Gramercy has approximately $1.8 billion in assets, generating $12 million annual in base revenues, stepping down to $10 million upon purchase of the BofA portfolio. Despite the portfolio’s finite life, it is currently profitable but revenue will likely decline as assets under management decline, but DuGan said opportunity to capture ‘tail’ revenues as portfolio is sold third parties is likely.

He explained that the company’s strategy is to sell non-core multi-tenant assets (approximately 40% by value) and retain a core portfolio of high quality assets in primary and strong secondary markets (approximately 60% by value).

As of July 31, the company had $199.4 million in cash, $35.9 million securities (CDO bonds) and $10.6 million in reimbursable CDO advances. According to its latest 8-K filing, the company has three discreet CDOs and ongoing servicing revenues are approximately $5 million annually, and are marketing for sale CDO management contracts, senior and junior bonds and CDO equity. If an attractive transaction is not available, Gramercy will collect CDO management fees for the remaining life of the CDOs, documents show.

DuGan said existing asset management contracts will run through 2015, and estimated total future fees could be $20 million or more. He said the company would look to extend contract for additional term, and to transfer assets, where possible.