Macklowe finds partner at Drake site

January 05, 2010 06:30PM

Developer Harry Macklowe has brought on CIM Group, a Los Angeles-based
private equity firm, to pay off the creditors at the former Drake
Hotel site
, a move that would allow him to effectively take control of
the space. Approximately 10 different investors had bought out the
$510 million loan that Macklowe had taken out to build on the former
hotel’s site
on Park Avenue between 56th and 57th streets. Deutsche
Bank began foreclosure proceedings on the space a year ago, after the
credit crisis pinched Macklowe’s holdings. Macklowe had
originally purchased the Drake Hotel in 2006 for $418 million, before
destroying it and beginning plans to rebuild.

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