Simultaneously with the execution of the purchase agreement, a Company affiliate and a Garrison affiliate funded as co-lenders an approximately $39.0 million mezzanine loan to certain affiliates of KBS. The loan is secured by cash collateral of $6.0 million and pledges of borrowers’ equity interests in certain entities owning various real estate assets and is guaranteed by KBS. The proceeds of the loan were used by KBS to extinguish certain loans held by third party lenders that were secured by, among other things, pledges of the membership interests being acquired by the joint venture.The loan had a 1% origination fee, bears interest at 10% per annum and has a stated maturity of April 1, 2013. The loan is deemed matured upon the joint venture’s purchase of the portfolio, and any outstanding loan balance will be applied as a credit against the purchase price at closing. The Company has also agreed that, effective upon the joint venture’s acquisition of the portfolio, the base management fee paid by KBS to a Company affiliate to manage the former Gramercy Realty portfolio will be reduced from $12.0 million to $9.0 million per year. Gordon F. DuGan, Chief Executive Officer of the Company, commented: “This transaction presents Gramercy with an opportunity to buy a high quality office portfolio primarily leased to Bank of America for $87 per square foot with a 10.9-year remaining lease term and an initial capitalization rate of approximately 8.5%. This agreement begins the implementation of our strategy to create durable, recurring cash flows through the ownership of long-term leased properties. We are very excited to enter into this venture with Garrison Investment Group and will be working diligently with our partner to close the transaction during the fourth quarter of this year.” COMPANY PROFILE Gramercy Capital Corp. is a self-managed, integrated commercial real estate investment and asset management company whose Gramercy Finance division manages approximately $2.0 billion of whole loans, bridge loans, subordinate interests in whole loans, mezzanine loans, preferred equity, commercial mortgage-backed securities and other real estate securities which are financed through three non-recourse collateralized debt obligations, and whose Gramercy Realty division currently manages approximately $2.0 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional investment and portfolio management offices in Jenkintown, Pennsylvania, Charlotte, North Carolina, and St. Louis, Missouri.