SL Green loan affiliate designated Special Servicer.

SL Green Realty Corp. announced that its affiliate, Green Loan Services LLC, has been designated a Special Servicer by Standard & Poor's.

The initial ranking of Average is based on the composite results of two sub-ranking categories: (1) Management and Organization and (2) Special Servicing Administration. GLS achieved an Above Average sub-ranking for Management and Organization, which covers staffing depth and experience, training, internal audits, procedural documentation, and information technology, and an Average sub-ranking for Special Servicing Administration.

The initial rankings of GLS come as it moves forward and anticipates growing as a Special Servicer. Established in 2005 to serve as the Special Servicer for Gramercy Real Estate CDO 2005-1 Ltd., the first CDO issued by Gramercy Capital Corp. (NYSE: GKK), GLS services owned-loan portfolios acquired through SL Green's and Gramercy's structured finance businesses, and also provides servicing work emanating from SL Green's third-party investor relationships. In addition, GLS acts as the Special Servicer for six large CMBS loans secured by Manhattan office properties in which SL Green owns the B notes.

S&P indicated that the GLS Special Servicer ranking of average was based on, among other factors, the firm's limited asset recovery track record and special servicing history, due largely to the fact that there have been very few loans under GLS's purview which have required special servicing, thereby limiting actual historical performance.

The evaluation states, "The strength of GLS ... is therefore based on its ability to leverage the staffing and technology resources within its parent for core special servicing-related support functions such as leasing and marketing, accounting, legal, and property management consultation. In particular, because of its parent's real estate equity investment portfolio, GLS has access to substantial in-house commercial property management expertise for large and complex properties, particularly within the New York City office market. GLS's technology platform includes purchased applications that provide real estate accounting and essential asset activity tracking to support special servicing work and related reporting that may arise within the SL Green, Gramercy, and Gramercy CDO portfolios."

The evaluation further states, "The professional staffing depth of the SL Green organization ... has a high degree of technical expertise in real estate construction and building management, valuation, and underwriting, especially within the complex real estate markets of New York City. Senior managers within SL Green possess solid asset recovery experience with large properties, even though the company through its parent, has not historically had a sizable volume of troubled loans."