Boston, Goldman, Middle Eastern investors angling for GM Building

May 21, 2008 08:28AM

Boston Properties, Goldman Sachs and two Middle Eastern investors are reportedly negotiating to buy the General Motors Building and up to four other towers from developer Harry Macklowe for $3.6 billion to $3.9 billion. A deal could be announced today. The group has contacted Macklowe’s lenders to talk about assuming the tower’s existing debt and possibly modify the loan terms. The GM Building would sell for about $2.8 billion, $200 million less than what Macklowe’s minimum price, but a record for an office building. Macklowe’s son Billy, president of Macklowe Properties, and his wife, Linda, reportedly convinced him that he had run out of options after trying to sell the tower for months and was putting the family’s fortune at risk. The deal would let Macklowe pay off some of the $7 billion in loans that he took out on seven Manhattan towers be bought at the market’s peak last year. The four other buildings include Two Grand Central Tower at East 44th Street, 510 Madison Avenue, 540 Madison Avenue and 125 East 55th Street. [Bloomberg] and [WSJ] and [Post]