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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 18pt"><B>UNITED
STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
</B></FONT><B><FONT STYLE="font-size: 10pt">Washington, D.C. 20549</FONT></B></P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>CURRENT
REPORT<BR>
Pursuant to Section 13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 30, 2012<BR>
</B>Date of report (Date of earliest event reported)</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 18pt"><B>Gramercy
Capital Corp.<BR>
</B></FONT><FONT STYLE="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)</FONT></P>

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<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 32%; vertical-align: top; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maryland</TD>
    <TD STYLE="width: 2%; vertical-align: bottom; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 32%; vertical-align: top; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">001-32248</TD>
    <TD STYLE="width: 2%; vertical-align: bottom; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 32%; vertical-align: top; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">06-1722127</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(State or Other Jurisdiction</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Commission</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(IRS Employer</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">of Incorporation)</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">File Number)</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Identification No.)</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 49%; vertical-align: top; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">420 Lexington Avenue</TD>
    <TD STYLE="width: 2%; vertical-align: bottom; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 49%; vertical-align: top; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">10170</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center">New York, New York</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Zip Code)</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(Address of Principal Executive Offices)</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(212) 297-1000<BR>
</B>(Registrant&rsquo;s telephone number, including area code)</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in 0pt 0; text-align: justify; text-indent: 9pt">Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing of obligation of the registrant under any of
the following provisions:</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD>
</TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD>
</TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Item 1.01.&#9;</B> <B>Entry into a Material
Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 30, 2012, GKK Realty Advisors LLC
(&ldquo;Manager&rdquo;), a wholly owned subsidiary of Gramercy Capital Corp., entered into an Asset Management
Services Agreement (the &ldquo;Management Agreement&rdquo;) with KBS Acquisition Sub, LLC (&ldquo;KBSAS&rdquo;), a wholly owned subsidiary
of KBS Real Estate Investment Trust, Inc. (&ldquo;KBS REIT&rdquo;), pursuant to which Manager will provide asset management services
to KBSAS with respect to certain underlying real estate assets (the &ldquo;Properties&rdquo;) that were transferred to affiliates
of KBSAS pursuant to a collateral transfer and settlement agreement (the &ldquo;Settlement Agreement&rdquo;), dated as of September
1, 2011, by and among GKK Stars Acquisition LLC (&ldquo;GKK Stars&rdquo;), KBSAS, KBS GKK Participation Holdings I, LLC, KBS GKK
Participation Holdings II, LLC, KBS Debt Holdings Mezz Holder, LLC and KBS Acquisition Holdings, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Management Agreement provides for Manager&rsquo;s
continued management of the Properties, as further specified in the Management Agreement, through December 31, 2015 for (i) a base
management fee of $12.0 million per year, payable monthly, plus the reimbursement of all property related expenses paid by Manager
on behalf of KBSAS (the &ldquo;Base Management Fee&rdquo;), subject to deferral of $166,667 per month at KBSAS&rsquo;s option until the
accrued amount equals $2.5 million or June 30, 2013, whichever is earlier, and (ii) an incentive fee (the &ldquo;Threshold Value
Profits Participation&rdquo;) in an amount equal to the greater of: (a) $3.5 million and (b) 10% of the amount, if any, by which
the portfolio equity value exceeds $375.0 million (as adjusted for future cash contributions into, and distributions out of, KBSAS
by KBS REIT). In any event, the Threshold Value Profits Participation is capped at a maximum of $12.0 million. The Threshold Value
Profits Participation is payable 60 days after the earlier to occur of June 30, 2014 (or March 31, 2015 upon satisfaction of certain
extension conditions, including the payment by KBSAS to Manager of a $750,000 extension fee) and the date on which KBSAS, directly
or indirectly, sells, conveys or otherwise transfers at least 90% of the Properties (by value).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, KBSAS and Manager each acknowledges,
among other things, that each of KBSAS and GKK Stars had completely satisfied their respective obligations under the Settlement
Agreement to the date of the Management Agreement and that no breach event had occurred under the Settlement Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The term of the Management Agreement will
continue to December 31, 2015 unless earlier terminated as therein provided. The Management Agreement may be terminated by Manager,
(i) without any KBSAS default under the Management Agreement, on or after December 31, 2012, upon 90 days&rsquo; prior written notice
or (ii) at any time by five business days&rsquo; prior written notice in the event of a KBSAS default under the Management Agreement.
The Management Agreement may be terminated by KBSAS, (i) without Cause (as defined in the Management Agreement), with an effective
termination date of March 31 or September 30 of any year but at no time prior to April 1, 2013, upon 90 days&rsquo; prior written notice
or (ii) at any time after April 1, 2013 for Cause. In the event of a termination of the Management Agreement by KBSAS after April
1, 2013 but prior to December 31, 2015, Manager will be entitled to receive a declining balance termination fee, ranging from $5.0
million to $2.0 million, calculated as specified in the Management Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing description of the Management
Agreement is qualified in its entirety by reference to the text of such agreement, which is attached hereto as Exhibit 10.1 and
is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 9.01.&#9;Financial Statements
and Exhibits.</B></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>(d) Exhibits</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-top: 1pt; padding-bottom: 2pt; text-align: left; font-weight: bold">Exhibit No.</TD>
    <TD STYLE="width: 4%; padding-top: 1pt; padding-bottom: 2pt; text-align: left; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 85%; border-bottom: windowtext 1pt solid; padding-top: 1pt; padding-bottom: 2pt; text-align: left; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 2pt">10.1</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2pt">Asset Management Services Agreement, dated as of March 30, 2012, by and between KBS Acquisition Sub, LLC and GKK Realty Advisors, LLC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Date: April 3, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-weight: bold">GRAMERCY CAPITAL CORP.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 4%; padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 44%; padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-bottom: 1pt">/s/ Jon W. Clark</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Name:&nbsp;&nbsp;Jon W. Clark</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>



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UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
March 30, 2012
Date of report (Date of earliest event reported)
Gramercy
Capital Corp.
(Exact Name of Registrant as Specified in Charter)
Maryland
001-32248
06-1722127
(State or Other Jurisdiction
(Commission
(IRS Employer
of Incorporation)
File Number)
Identification No.)
420 Lexington Avenue
10170
New York, New York
(Zip Code)
(Address of Principal Executive Offices)
(212) 297-1000
(Registrant's telephone number, including area code)
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing of obligation of the registrant under any of
the following provisions:
¨
Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.
Entry into a Material
Definitive Agreement.
On March 30, 2012, GKK Realty Advisors LLC
("Manager"), a wholly owned subsidiary of Gramercy Capital Corp., entered into an Asset Management
Services Agreement (the "Management Agreement") with KBS Acquisition Sub, LLC ("KBSAS"), a wholly owned subsidiary
of KBS Real Estate Investment Trust, Inc. ("KBS REIT"), pursuant to which Manager will provide asset management services
to KBSAS with respect to certain underlying real estate assets (the "Properties") that were transferred to affiliates
of KBSAS pursuant to a collateral transfer and settlement agreement (the "Settlement Agreement"), dated as of September
1, 2011, by and among GKK Stars Acquisition LLC ("GKK Stars"), KBSAS, KBS GKK Participation Holdings I, LLC, KBS GKK
Participation Holdings II, LLC, KBS Debt Holdings Mezz Holder, LLC and KBS Acquisition Holdings, LLC.
The Management Agreement provides for Manager's
continued management of the Properties, as further specified in the Management Agreement, through December 31, 2015 for (i) a base
management fee of $12.0 million per year, payable monthly, plus the reimbursement of all property related expenses paid by Manager
on behalf of KBSAS (the "Base Management Fee"), subject to deferral of $166,667 per month at KBSAS's option until the
accrued amount equals $2.5 million or June 30, 2013, whichever is earlier, and (ii) an incentive fee (the "Threshold Value
Profits Participation") in an amount equal to the greater of: (a) $3.5 million and (b) 10% of the amount, if any, by which
the portfolio equity value exceeds $375.0 million (as adjusted for future cash contributions into, and distributions out of, KBSAS
by KBS REIT). In any event, the Threshold Value Profits Participation is capped at a maximum of $12.0 million. The Threshold Value
Profits Participation is payable 60 days after the earlier to occur of June 30, 2014 (or March 31, 2015 upon satisfaction of certain
extension conditions, including the payment by KBSAS to Manager of a $750,000 extension fee) and the date on which KBSAS, directly
or indirectly, sells, conveys or otherwise transfers at least 90% of the Properties (by value).
Further, KBSAS and Manager each acknowledges,
among other things, that each of KBSAS and GKK Stars had completely satisfied their respective obligations under the Settlement
Agreement to the date of the Management Agreement and that no breach event had occurred under the Settlement Agreement.
The term of the Management Agreement will
continue to December 31, 2015 unless earlier terminated as therein provided. The Management Agreement may be terminated by Manager,
(i) without any KBSAS default under the Management Agreement, on or after December 31, 2012, upon 90 days' prior written notice
or (ii) at any time by five business days' prior written notice in the event of a KBSAS default under the Management Agreement.
The Management Agreement may be terminated by KBSAS, (i) without Cause (as defined in the Management Agreement), with an effective
termination date of March 31 or September 30 of any year but at no time prior to April 1, 2013, upon 90 days' prior written notice
or (ii) at any time after April 1, 2013 for Cause. In the event of a termination of the Management Agreement by KBSAS after April
1, 2013 but prior to December 31, 2015, Manager will be entitled to receive a declining balance termination fee, ranging from $5.0
million to $2.0 million, calculated as specified in the Management Agreement.
The foregoing description of the Management
Agreement is qualified in its entirety by reference to the text of such agreement, which is attached hereto as Exhibit 10.1 and
is incorporated by reference herein.
Item 9.01.	Financial Statements
and Exhibits.
(d) Exhibits
Exhibit No.
Description
10.1
Asset Management Services Agreement, dated as of March 30, 2012, by and between KBS Acquisition Sub, LLC and GKK Realty Advisors, LLC.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 3, 2012
GRAMERCY CAPITAL CORP.
By:
/s/ Jon W. Clark
Name:  Jon W. Clark
Title:    Chief Financial Officer