Macklowe reaches deal over debt
February 01, 2008 08:40AM
Harry Macklowe
Struggling real estate baron Harry Macklowe has reportedly reached a deal with Deutsche Bank to hand over control of seven Manhattan office buildings he acquired less than a year ago for $7 billion. Macklowe would still retain title and Macklowe Properties would still manage the buildings. His $5.8 billion debt was due on Feb. 9; now it has been extended while the buildings could be marketed for sale. "If he effectively gave up control of the assets, that is a little surprising because he's such a scrapper," said Scott Arnold, a real estate attorney King & Spalding. Many observers say that Macklowe overpaid when he spent $7 billion on the buildings, and say their value has dropped since he bought them at the height of the city's real estate boom. [WSJ]
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments
Stephen
That's good for the market, but bad for Harry. Solow must be happy, so are all the people he's burned over the years, but its still not as bad as many people thought and that's good for this market. One other thing, Harry has been doing this for a very long time and he has always managed to come out on top. He is still not out.
Comment #1 Posted By: Stephen 02/01/08
CHARLE
SAM ZELL AND BLACKSTONE MUST BE FEELING SO PROUD OF THIER MOUNTAIN-TOP EXPERIENCE.38 PLUS BILLION FOR THE EQUITY PORTFOLIO AND THEN 7 BILLION PLUS FROM MACKLOWE FOR THE NEW YORK PORTION.ONE OF THE BLACKSTONE GUYS SAID IT WAS LIKE SELLING ONE OF HIS CHILDREN.MAKES A WOMAN WANT TO WEEP.MACKLOWE SHOULD REVISE THE ORIGINAL DEAL WITH BLACKSTONE, WHO SHOULD REVISE THE ORIGINAL,ORIGINAL DEAL WITH ZELL!
Comment #2 Posted By: CHARLE 02/01/08