Gramercy Capital Corp. (GKK:US), a New York- based company that finances commercial real estate, hired a new chief executive officer and said it will remain independent after a review of its management and strategy.
The company will focus on single-tenant lease investments that will initially be funded from existing finances, according to a statement today by Gramercy, which said it later may seek to raise additional debt and equity. The review was started in response to “changes in market conditions,” Gramercy said.
Gordon F. Dugan will become CEO and a member of the board on July 1, the company said. Dugan, who has more than 20 years of senior management experience in the real estate industry, was CEO for W.P. Carey & Co. LLC for five years. Benjamin P. Harris will was named president and Nicholas L. Pell will become managing director. The three worked together at W.P. Carey.
Gramercy fell 6.4 percent to $2.36 as of 10:16 a.m. in New York.
The company last year solicited bids for a buyout after agreeing to settle $549.7 million in mortgage debt with lenders, people with knowledge of the matter said in November. Gramercy, which had been in default on its loans, became current on its debt payments.
“Gramercy is well positioned to capitalize on opportunities now emerging in the marketplace,” Dugan, who will replace Roger Cozzi as CEO, said in the statement.
The company said it expects to provide an update on the investment strategy and review by Aug. 9, in connection with the release of second-quarter financial results.
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