Macklowe borrows $500M against GM Building 

New York /
Apr.April 13, 2008 09:04 AM

 
Macklowe Properties has borrowed another $500 million against the value of its prized General Motors Building, even as Harry Macklowe’s company faces financial pressure following its highly-leveraged purchase of seven Manhattan buildings for $7 billion earlier this year. 

Macklowe Properties upped its mortgage, sold by the German American Capital Corp., from $800 million to $1.3 billion, the city Department of Finance Website
revealed yesterday.

Macklowe is being squeezed by the mortgage meltdown and the tightening credit market. Some observers have speculated that Macklowe Properties would use funds from the mortgage to service debt on the buildings it bought from Blackstone Group LP in February.

Macklowe’s public relations firm, Rubenstein Associates, declined to comment.

The borrowers paid $14 million in local taxes on the loan, the document said.

Macklowe Properties’s Fifth Avenue 58/59 Acquisition Co. bought the General Motors building, located at 767 Fifth Avenue, for $1.4 billion in 2003, then a U.S. record for an office building.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
From left: Robert Zangrillo, Geoff Palmer, Tom Barrack and President Donald Trump (Getty, iStock)
Trump’s people claim Geoff Palmer and Tom Barrack backed Zangrillo pardon
Trump’s people claim Geoff Palmer and Tom Barrack backed Zangrillo pardon
Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Signature Bank president Joseph DePaolo (Getty Images; iStock)
Signature achievement: Bank’s loan deferrals down to 9%
Signature achievement: Bank’s loan deferrals down to 9%
From far left: Jose Huizar, Nury Martinez, Eric Garcetti and Marqueece Harris-Dawson
LA’s scandal response: status quo
LA’s scandal response: status quo
Robert Reffkin 
Compass’ Robert Reffkin bought $16M Tribeca pad: sources
Compass’ Robert Reffkin bought $16M Tribeca pad: sources
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...