Boston Properties’ Mortimer Zuckerman (top), Harry Macklowe and 510 Madison

Boston Properties has scored its first office tenant at 510 Madison Avenue, the new, vacant building on the corner of East 53rd Street that the company purchased from Harry Macklowe for $275 million earlier this year, Crain’s reported. The lease, for the entire 28th floor, was signed by Senator Investment Group at more than $100 per square foot, sources said. While Senator may turn out to be the first firm to relocate to the 30-story tower, it isn’t the first to agree to take space there.
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Marc Holliday

SL Green Realty CEO Marc Holliday is feeling optimistic. The commercial real estate behemoth has raised its performance expectations for 2010, predicting that earnings per share could hit as much as $4.75 by the end of the year. The company’s previous earnings guidance suggested that earnings per share would reach anywhere between $3.90 and $4.10 by 2010′s end. Holliday said that recent events have influnced his company’s outlook. “The repayment of our loans in connection with the sale of 510 Madison Avenue marks the conclusion of one of SL Green’s most successful debt investments to date,” Holliday said, noting that gradually stabilizing market conditions have also shaped his outlook. “We are pleased with the steady improvement of the New York City office market in 2010, both on the leasing and investment fronts.” TRD

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While SL Green failed to scoop up 510 Madison Avenue last week, after Boston Properties announced it had reached a deal to buy the troubled Macklowe building for $317 million, it does stand to gain a tidy windfall from the property, according to Crain’s. Once Boston Properties closes on the deal, SL Green will gain a $50 million profit on the two discounted loans it purchased on the building last year — marking a 50 percent return on the investment. Anthony Paolone, an analyst for JPMorgan Chase who has researched the deal, said that SL Green has reason to celebrate, even though it didn’t win the ultimate prize. “[SL Green] almost certainly wanted to own 510 Madison given its location and quality, but we think the sale of the asset and the ultimate payoff of the debts [owed to SL Green] is nonetheless a lucrative outcome for the company,” Paolone said. [Crain's]

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510 Madison Avenue

(Updated, August 3) Tishman Speyer may be an investment partner in a new effort by O’Connor Capital Partners to buy out 510 Madison from developer Harry Macklowe, [more]

From left: Billy and Harry Macklowe

Billy
Macklowe, son of real estate developer and investor Harry Macklowe, has
officially founded the William Macklowe Company, the new firm announced
today. The younger Macklowe brought with him a dozen former employees
from his father’s Macklowe Properties — where he became CEO and
chairman in 2008, ousting his father from the role, before announcing his resignation
this May. Billy’s new venture will focus heavily on acquisitions,
strategic lending and real estate investment. “Our buildings will be
run and operated in the Macklowe tradition, which has long been
recognized for exemplifying the highest management standards of our
industry,” Billy said, adding that his company plans “to be
opportunistic in [its] investment strategy.” So far, the company has
refinanced two portfolio properties, 400 Madison Avenue and 610
Broadway — both of which had been under Billy’s control while at
Macklowe Properties, according to a spokesperson for William Macklowe
Company. The spokesperson also added that Billy had moved out his dad’s
company “a couple of weeks ago.” TRD

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From left: Billy and Harry Macklowe

Billy
Macklowe, son of real estate developer and investor Harry Macklowe, has
officially founded the William Macklowe Company, the new firm announced
today. The younger Macklowe brought with him a dozen former employees
from his father’s Macklowe Properties — where he became CEO and
chairman in 2008, ousting his father from the role, before announcing his resignation
this May. Billy’s new venture will focus heavily on acquisitions,
strategic lending and real estate investment. “Our buildings will be
run and operated in the Macklowe tradition, which has long been
recognized for exemplifying the highest management standards of our
industry,” Billy said, adding that his company plans “to be
opportunistic in [its] investment strategy.” So far, the company has
refinanced two portfolio properties, 400 Madison Avenue and 610
Broadway — both of which had been under Billy’s control while at
Macklowe Properties, according to a spokesperson for William Macklowe
Company. The spokesperson also added that Billy had moved out his dad’s
company “a couple of weeks ago.” TRD

[more]

510 Madison Avenue, Harry Macklowe of Macklowe Properties (top) and Marc Holliday of SL Green (bottom)

Harry Macklowe and SL Green Realty have reached an agreement on 510 Madison Avenue, the 30-story tower on which SL Green recently purchased the debt and then tried to foreclose. The ownership battle headed to court earlier this year, hindering already-struggling efforts to lease the building. Under the agreement, Macklowe has until next March to repay loans to SL Green. The balance on those loans as of March of this year, when the loans were due, was around $253.1 million, plus $131,548 in interest. If Macklowe fails to pay it back by the deadline — plus a loan extension payment of $822,500 by Sept. 1 — he has agreed not to fight an SL Green foreclosure. Thus far, Macklowe has signed just one tenant for the building, investment firm Jay Goldman, which is trying to back out of the lease. [Crain's]

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510 Madison Avenue, Harry Macklowe of Macklowe Properties (top) and Marc Holliday of SL Green (bottom)

Harry Macklowe and SL Green Realty have reached an agreement on 510 Madison Avenue, the 30-story tower on which SL Green recently purchased the debt and then tried to foreclose. The ownership battle headed to court earlier this year, hindering already-struggling efforts to lease the building. Under the agreement, Macklowe has until next March to repay loans to SL Green. The balance on those loans as of March of this year, when the loans were due, was around $253.1 million, plus $131,548 in interest. If Macklowe fails to pay it back by the deadline — plus a loan extension payment of $822,500 by Sept. 1 — he has agreed not to fight an SL Green foreclosure. Thus far, Macklowe has signed just one tenant for the building, investment firm Jay Goldman, which is trying to back out of the lease. [Crain's]

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510 Madison Avenue, Harry Macklowe of Macklowe Properties (top) and Marc Holliday of SL Green (bottom)

Developer Harry Macklowe will face off in court April 14 to block SL Green from foreclosing on 510 Madison, amid claims that the company is engaged in a predatory attempt to buy his new office tower after it was damaged in a 2009 fire.
Macklowe, after filing yesterday in New York State Supreme Court, was granted a hearing next month to determine whether SL Green can move forward with a scheduled April 20 auction of the property’s mezzanine debt.
Lawyers for Macklowe claim that SL Green wants to cash in on the property despite an agreement he had to extend his original construction deadline. SL Green acquired the senior mortgage and mezzanine loans in December and called in a new default after a new appraisal showed the building was underwater. [more]