Macklowe Properties, which was forced last month to sell its prized General Motors Building to a Boston Properties-led group, said it named William Macklowe as its new chairman and chief executive, in a highly-anticipated shakeup of the company’s top management.
Harry Macklowe, the company founder and father of William Macklowe, was named chairman emeritus, effectively ceding the mantle of leadership to his son.
“I look forward to continuing the successful business my father and I created, building upon it and branching out — undertaking new projects that will further the contributions we’ve made to New York City over the years,” William Macklowe said in a statement.
“I will be identifying exciting new opportunities for us and working with our existing investors and a growing network of new investors and guiding the expansion of our business with the exceptionally creative, hands on development and management approach for which Macklowe Properties is known,” he said.
The Wall Street Journal first reported that William Macklowe would take over the family firm late last month.
William Macklowe, the former president of Macklowe Properties, had reportedly insisted that his father give up leadership of the company, following the sale of the General Motors Building, which was sold after the company was buried under about $7 billion in overdue short-term debt. Harry Macklowe brought on the debt in a highly-leveraged purchase of seven Midtown buildings that were once owned by Equity Office Properties last year.
Three of those properties are expected to sell soon. Shorenstein Properties, a San Francisco-based real estate investment firm, is reportedly buying the Park Avenue Tower and 850 Third Avenue for $930 million. Paramount Group is set to take 1301 Sixth Avenue for $1.45 billion.
Macklowe Properties is still in the developing business: it is building 510 Madison, a 30-story office building in the Plaza District of Manhattan, and is redeveloping 1330 Sixth Avenue, a 40-story Office Tower Located Between 53rd Street and 54th streets.
Prior to joining Macklowe Properties in 1992, William Macklowe, a graduate of New York University, was a real estate analyst for Manufacturers Hanover. He serves on the Board of Governors of the Real Estate Board of New York.
Eric Anton, executive managing director of Eastern Consolidated, a New York-based real estate investment services firm, said he expects William Macklowe to scale back and focus on managing properties the firm owns.
“The last five years were really about the booming market and go-go-go,” said Anton. “Now it’s going to be about managing and improving properties, about having good relationships with tenants.”