Gramercy Capital Corp. (NYSE: GKK) today announced that the scheduled maturity of its (i) $240.5 million mortgage loan (the "Goldman Mortgage Loan"), with Goldman Sachs Mortgage Company ("GSMC"), Citicorp North America, Inc. ("Citicorp") and SL Green Realty Corp. ("SL Green," and, collectively with GSMC and Citicorp, the "Mortgage Lenders"), and (ii) $549.7 million senior and junior mezzanine loans (the "Gramercy Realty Mezzanine Loans"), with KBS Debt Holdings, LLC ("KBS"), GSMC, Citicorp and SL Green (collectively, the "Mezzanine Lenders") has occurred without repayment by the borrowers thereunder and without an extension or restructuring of the loans by the lenders. As a result of such non-repayment, the Mortgage Lenders and the Mezzanine Lenders (collectively, the “Gramercy Realty Lenders”) may immediately seek to exercise available remedies, which will likely include attempting to foreclose on all or substantially all the collateral securing the Gramercy Realty Loans. The Goldman Mortgage Loan and the Gramercy Realty Mezzanine Loans (collectively, the “Gramercy Realty Loans”) are secured by mortgages on certain properties owned by the Company’s Gramercy Realty division and by pledges of equity interests in substantially all of the entities constituting the Company’s Gramercy Realty division. Notwithstanding the maturity and non-repayment of the Gramercy Realty Loans, the Company maintains active communications with the Gramercy Realty Lenders and is endeavoring to negotiate an agreement for an orderly transition of all or substantially all of the Gramercy Realty assets to the Gramercy Realty Lenders, a mutual release of claims among the Company and the Gramercy Realty Lenders and, subject to certain termination provisions, the Company’s continued management of the Gramercy Realty assets on behalf of the Gramercy Realty Lenders. The terms of such an agreement have not yet been finalized, however, and there can be no assurance the Company and the Gramercy Realty Lenders will ever consummate such an agreement.