Solow suit could slow Macklowe’s sale of GM Building

A lawsuit by developer Sheldon Solow, which alleges that rival Harry Macklowe’s 2003 purchase of the General Motors Building was fraudulent, could complicate Macklowe’s attempts to sell the building. A judge ruled earlier this month the case could move forward, surprising observers. “The judge’s decision could put the brakes on any sale, or at a minimum change the economics,” said Ross Moskowitz, a real estate partner at Stroock & Stroock & Lavan. “Unless there is a comfort level on the merits of the litigation with a meaningful indemnification, any prospective buyer and lender would have to think long and hard about moving forward with this purchase.” Macklowe must raise billions to pay off debt that is due in just a few weeks.