February 6, 2008
After taking control of a $7B portfolio of properties from Equity Office last year, Harry Macklowe’s financing situation is rumored to have led to a deal to relinquish control of his properties to his lender, Deutsche Bank.
His financing package, when he acquired the buildings, only required him to put $50M worth of equity into the deal. In addition however, Macklowe was required to provide a personal guarantee of $1b for the deal.
As a result, CBRE has been retained by Macklowe to sell his trophy asset, the GM building in New York, possibly to help satisfy his obligations. The GM Building which Macklowe picked up in 2003 for $1.4B is estimated to be worth north of $3B.
The commercial paper market has taken a bite out of some investors but fortunately it seems that it is a manageable exit for Macklowe and the market.
- Sale of Macklowe’s GM Building Looking Likely
- Boston Properties, Goldman Sachs Acquire GM Building; Macklowe Son To Take Over
- Broadway Partners Runs Into Trouble – San Francisco Holdings On The Table?
- If New York is a Leading Indicator…
- Tishman Loses Stuyvesant Town Ruling