April 21, 2009
The Macklowe Empire is shrinking again. The NY-based developer is set to lose another building, 1330 Avenue of the Americas, to a Canadian lender. The foreclosure is similar to nature to the Hancock Tower transaction in which the foreclosure is being triggered by a default on the mezzanine debt.
Bloomberg has the following additional information about the asset:
- Acquired for $498 million in December 2006 (closing the same day as Hancock Tower).
- $240M senior debt from Deutsche Bank
- $130M mezz debt, later sold to Montreal’s Cadim and then transferred to Otera
- Macklowe defaults in January on the mezzanine debt
- The building is ~525K square feet, with three levels of three underground parking levels providing for about 225 cars.
- The auction will be held tomorrow at 1PM @ the office of Allen & Overy’s.
- Boston’s John Hancock Tower To Be Auctioned Off March 31
- Infighting Amongst Hancock Tower Debt Holders
- Boston Properties, Goldman Sachs Acquire GM Building; Macklowe Son To Take Over
- Hancock Tower Fetches $660M At Auction; Normandy and Five Mile Winners
- Mezz Debt Loses Its Luster