Macklowe’s debt talks stall

The Wall Street Journal reports that developer Harry Macklowe’s negotiations over his $7 billion short-term debt on seven Manhattan office towers have stalled and that he has received a default notice. Vornado Realty Trust, one of Macklowe’s subordinate lenders, is reportedly opposed to a tentative deal. After the lenders failed to reach a deal on $3.1 billion of the debt, Macklowe was reportedly served with a default notice yesterday, which could lead to foreclosure. Vornado, which holds the smallest slice of Macklowe’s debt, opposes the deal because it fears its investment could be lost if Macklowe’s buildings are sold for far less than what he paid for them last year.