Lenders looking to seize about 900 properties from New York-based REIT Gramercy Capital after it fails to pay off US$790M in loans

LOS ANGELES , May 11, 2011 () – Lenders may look to seize about 900 properties from real estate investment trust Gramercy Capital Corp. after it failed to pay off US$790 million in loans, Bloomberg reported May 9.

In a statement, New-York based Gramercy said that the four lenders -- Goldman Sachs Mortgage Co., Citicorp North America Inc., SL Green Realty Corp. and KBS Debt Holdings LLC – would likely attempt to foreclose on most or all of the collateral.

According to Real Capital Analytics Inc., lenders that offered to extend troubled real estate debt following the financial crisis of 2008 are increasingly opting to liquidate the loans and sell the underlying assets.

The primary source of this article is Bloomberg, New York, New York, on May 9, 2011.

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