Gramercy Capital Corp., New York, has defaulted on $791 million in first mortgage and mezzanine loans, as the loans reached their latest maturity date without a payment being made.
The loans in question are a $241 million loan from Goldman Sachs Mortgage Co., Citicorp North America Inc., and SL Green Realty Corp.; and senior and junior mezzanine loans totaling $550 million from KBS Debt Holdings LLC, along with the three previously mentioned lenders.
Gramercy had previously negotiated two extensions to the maturity date, the last expiring on April 29th.
The first extension was for one month for a payment of $3.5 million. It expired on April 15, and its purpose was to give Gramercy time to negotiate a longer-term extension, modification, restructuring or refinancing.
In its statement, Gramercy said it is likely the lenders will seek to foreclose on all of the Gramercy Realty division properties that were used as security; the collateral also includes pledges of equity interests in "substantially all of the entities" that make up Gramercy Realty.
According to the company's third quarter 10-Q filing, the Goldman mortgage loan is collateralized by approximately 195 properties held by Gramercy. The mezzanine loans are collateralized by the equity interest in substantially all of the Gramercy Realty division, including its cash and cash equivalents totaling $32,428 of the company’s unrestricted cash as of Sept. 30, 2010.
Gramercy said it is still having "active communications" with the lenders and is looking to negotiate an orderly transition for properties to those lenders and an agreement to continue to manage those properties.
