GM Building deal seen as risky

Harry Macklowe’s $2.8 billion dollar sale of the GM Building to a Mort Zuckerman-led group was seen as a sign that the market was picking up, but some observers are calling the deal a risky one during an uncertain commercial market, as financial firms cut thousands of workers. But Zuckerman remains upbeat about Manhattan. “You have the combination of constraints on new supply, higher costs when you can build new supply and, in our judgment, a very strong demand,” he told the Journal. Zuckerman’s Boston Properties was backed by Goldman Sachs, Morgan Stanly and Middle Eastern investors. The partnership also purchased three other Midtown towers from Macklowe. [WSJ] and [NYO]