KBS REIT I

Here is a link to a Bloomberg article on Gramercy Capital's settlement with KBS REIT I and other creditors on $549 million of mortgage debt, on which Gramercy defaulted in May 2011  As part of the settlement, KBS REIT I will receive:

About 317 commercial properties in the REIT’s Gramercy Realty division were given up today to lender KBS Debt Holdings LLC in an initial transfer, Gramercy Capital said in a statement. The agreement obligates KBS to acquire all remaining Gramercy Realty entities and properties by Dec. 15 and releases the REIT from outstanding loan balances and contractual and default interest.

Here is another paragraph from the article:

KBS, along with Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C), held senior and junior mezzanine loans on the Gramercy properties and threatened to foreclose on about 900 properties in May after Gramercy Capital failed to pay off debt.

The article did not give specifics as they relate to KBS REIT I.  At June 30, 2011, KBS REIT I carried the mezzanine loan on its book with a $459 million book value, subject to a $187 million repurchase agreement.  I'm waiting for KBS REIT I to file an 8-K explaining the transaction and its ramifications.