NEW YORK, NY (REIT Media) March 18, 2008 - Gramercy Capital Corp. (NYSE: GKK) (the “Company”) announced today that its Board of Directors authorized, and the Company declared, its quarterly dividend of $0.63 per common share for the quarter ending March 31, 2008. The first quarter dividend is payable on April 15, 2008.

Based on Monday’s closing price of $17.00, this regular quarterly distribution represents an annualized dividend yield of 14.82%.

The Company’s merger agreement with American Financial Realty Trust (“AFR”) requires the Company to pay its first quarter dividend to the former AFR stockholders who will become the Company’s stockholders following the merger. As a result, the record date for the Company’s first quarter dividend can not be set prior to the closing of the AFR transaction. The Company currently anticipates that the closing of its acquisition of AFR will occur on or about March 31, 2008. Accordingly, the Company’s Board of Directors has determined that the record date for its first quarter dividend will be April 2, 2008. However, if the closing of the AFR transaction is delayed for any reason to a date later then April 1, 2008, the record date for the Company’s first quarter dividend will be the first business day immediately following the closing date of the AFR transaction. The dividend is payable on April 15, 2008.

The Board of Directors also authorized, and the Company declared, a dividend for the Company's Series A Preferred Stock for the period January 1, 2008 through March 31, 2008, of $0.50781, reflecting an annualized distribution of $2.03125. Dividends are payable April 15, 2008 to shareholders of record at the close of business on March 31, 2008.

Company Profile

Gramercy Capital Corp. is a commercial real estate specialty finance company that focuses on the direct origination and acquisition of whole loans, subordinate interests in whole loans, mezzanine loans, preferred equity, CMBS and other real estate securities, and net lease investments involving commercial properties throughout the United States. Gramercy is externally-managed by GKK Manager LLC, which is a majority-owned subsidiary of SL Green Realty Corp. (NYSE: SLG). Gramercy is headquartered in New York City and has a regional investment office in Los Angeles, California.

Forward-Looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include the strength of the commercial real estate property markets, competitive market conditions, unanticipated administrative costs, general and local economic conditions, interest rates, capital market conditions, bankruptcies and defaults of borrowers or tenants in properties securing the Company's investments, the satisfaction of closing conditions to the merger between the Company and American Financial Realty Trust, difficulties encountered in integrating the companies, and other factors, which are beyond the Company's control. We undertake no obligation to publicly update or revise any of the forward-looking information. For further information, please refer to the Company's filings with the Securities and Exchange Commission.

To review Gramercy Capital Corp.'s latest news release and other corporate documents, please visit the Company's website at www.gramercycapitalcorp.com. or contact Investor Relations at 212-297-1017.

Gramercy Capital Corp.
Robert R. Foley, 212-297-1000
Chief Financial Officer
or
Heidi Gillette, 212-297-1000
Investor Relations