NEW YORK—Gramercy Capital Corp. and an affiliate of Garrison Investment Group have formed a joint venture, which has executed a purchase agreement with the intent to acquire 100 percent of the membership interests in entities owning 115 office buildings from an affiliate of KBS Real Estate Investment Trust Inc. for $470 million in cash.

Buyers’ obligations under the purchase agreement are subject to the satisfaction of certain conditions, including obtaining mortgage financing on terms satisfactory to buyer. If an agreement is reached, the acquisition is expected to close in 2012. Each partner owns a 50 percent membership interest in the joint venture.

The portfolio totals 5.6 million sq. ft. of which approximately 81 percent is leased to Bank of America N.A. for a term ending in June 2023.

Gramercy Capital Corp. expects the joint venture to leverage the portfolio with approximately 55 percent to 60 percent mortgage financing with plans to market for sale certain non-core assets.

Gordon F. DuGan, chief executive officer of Gramercy Capital Corp. said, “This transaction presents Gramercy with an opportunity to buy a high quality office portfolio primarily leased to Bank of America for $87 per sq. ft. with a 10.9-year remaining lease term and an initial capitalization rate of approximately 8.5 percent. We are very excited to enter into this venture with Garrison Investment Group and will be working diligently with our partner to close the transaction during the fourth quarter of this year.”