Macklowe could sell GM Building this month
February 01, 2008 08:35AM
GM Building
Developer Harry Macklowe could reportedly sell the General Motors Building this month to pay off debts with Deutsche Bank. Bids for the 50-story building are due Feb. 15. Macklowe made his stake in the building collateral for a $1.2 billion bridge loan by Fortress Investment Group, which financed the $7 billion acquisition of seven Manhattan office buildings last year. The cost of borrowing has shot up by one-third since Macklowe bought the buildings, said Scott Singer, executive vice president of New York-based Singer & Bassuk Organization. While some say Macklowe paid too much for them, Howard Michaels, chairman of New York-based Carlton Advisory Services Inc., said Macklowe "paid an appropriate price at the time he bought the properties. It was a major score for him. And it was unforeseeable by him or anybody else that the market would change so drastically.'' [Bloomberg]
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Comments
CHARLES
IT WAS NOT UNFORSEEN BY SAM ZELL,WHO SOLD THE EQUITY PORTFOLIO OR BLACKSTONE WHO PASSED THEM TO MACKLOWE.
Comment #1 Posted By: CHARLES 02/01/08
Andrews
It was and it wasn't. EOP was not interested in selling those properties unless they had a godfather offer. However, Zell would not have been in the same predicament, because his mortgage on these properties was reasonable.
Comment #2 Posted By: Andrews 02/01/08
Anonymous
Andrews, do you think that Zell would want to go back in time and own these properties again? I doubt it. He made more money than possible on those buildings. The only person happier right now is Steve Roth, for not paying the $55 a share EOP wanted from the auction.
Comment #3 Posted By: Anonymous 02/01/08
cal
GREEDY GREEDY
Comment #4 Posted By: cal 02/01/08
Wilson
Sam Zell sold and has suffered a similar loss of value in his media investment. Unfortunately there are no winners, and losing will have a trickle down effect that impacts everyone.
Comment #5 Posted By: Wilson 02/03/08
Anonymous
What's Macklowe's asking price on GM or per square foot?
Comment #6 Posted By: Anonymous 04/29/08