Gramercy Capital Corp. (Gramercy) is a real estate investment trust

Real estate investment trust

A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors...

 (REIT) and a commercial real estate

Real estate

In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...

 specialty finance company

Financial institution

In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...

 that focuses on the direct origination and acquisition of whole loans, subordinate interests in whole loans, mezzanine loans, bridge loans, preferred equity

Preferred stock

Preferred stock, also called preferred shares, preference shares, or simply preferreds, is a special equity security that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument...

, and net lease investments involving commercial properties throughout the United States.

Gramercy has also established a real estate securities business that focuses on the acquisition, trading and financing of commercial mortgage-backed securities

Commercial mortgage-backed security

Commercial mortgage-backed securities are a type of mortgage-backed security backed by mortgages on commercial rather than residential real estate....

 (CMBS). As of December 31, 2007, the Company held loans, other lending investments, and CMBS of approximately $3.4 billion, net of fees, discounts, and unfunded commitments. It also held interests in three credit tenant net lease investments investments, two interests in joint venture

Joint venture

A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...

s and a 100% fee interest in a property.

Substantially all of Gramercy's operations are conducted through its general partner, GKK Capital LP.