While the stock of Gramercy Capital Corporation reached $28.51 for its 52-week high, it closed yesterday at $1.32. In October, it suspended its third-quarter dividend to save $32.3 million. (FCE acted similarly last week.) The company might be a little antsy about getting repaid promptly and in full.
The AY loan
The New York Observer reported this week on the loan:
And in terms of the private sector, the developer is seeking to extend a loan with Gramercy Capital on Forest City–owned property in the project’s footprint, slated to come due in February. The large bridge loan—a $152 million loan from Gramercy was listed in property records—was originally intended to be rolled into a larger financing package that Forest City would have obtained before construction started, according to an executive involved with the loan.
The Wall Street Journal clarified:
A $153 million land loan from Gramercy Capital Corp. that has accrued to $177 million, is due at the beginning of February. Forest City is in talks with Gramercy to extend the loan.
At right are excerpts from the Atlantic Yards City Funding Agreement (large PDF), where pages 87-92 concern various iterations of the Gramercy Capital loan.
And what's Gramercy Capital? The company web site explains:
Gramercy Capital Corp. (NYSE: GKK) is a national commercial real estate special finance company organized as a real estate investment trust (REIT). Sponsored by SL Green Realty Corp. (NYSE: SLG), Gramercy was formed in April 2004 to provide customized commercial real estate finance products to sophisticated property investors in markets throughout the United States. Gramercy is headquartered in New York City and has a regional investment office in Los Angeles.
...Gramercy originates and acquires a range of loan products intended to assist its clients in achieving their financing and liquidity needs quickly and cost-effectively, with professional execution and a continuing commitment to quality client service.