Vornado blocks Macklowe debt deal

Steven Roth, Vornado Realty Trust’s chairman, has emerged as an unexpected stumbling block for real estate mogul Harry Macklowe, who continues is struggling to finalize a deal over his past-due $5.8 billion loan. Deutsche Bank has already signed off on a deal that would transfer ownership of the seven Manhattan office buildings that Macklowe bought last year. But the deal, which would let Macklowe retain a management role, has been blocked by Vornado, a subordinate lender that holds the smallest slice of Macklowe’s debt. Vornado reportedly could be trying to buy all the debt from the other lenders as a way to end up owning the properties.