Macklowe May Relinquish Seven-Asset Control

NEW YORK CITY-Harry Macklowe has reached a tentative deal to turn over effective control of seven local office buildings he acquired less than a year ago for $7 billion to his lender, Deutsche Bank, according to reports. Macklowe’s son William, who currently serves as president of the company, tells GlobeSt.com that he has no comment at this time regarding the reports.

Macklowe borrowed $5.8 billion from Deutsche Bank to acquire the buildings last year and the debt is scheduled to come due on Feb. 9. Under the agreement, according to reports, he would get an extension of the loan but Deutsche Bank would control the properties so they could be marketed and sold; however, Macklowe would still retain title.

The seven properties Macklowe may relinquish include the 610,000-sf Park Avenue Tower at 65 E. 55th St., the 1.8-million-sf 1301 Avenue of the Americas, the 1.6-million-sf Worldwide Plaza at 825 Eighth Ave., the 225,000-sf 527 Madison Ave., the 950,000-sf 1540 Broadway, the 562,567-sf 850 Third Ave. and the 200,000-sf Tower 56 at 126 E. 56th St. On Jan. 16, GlobeSt.com reported that Macklowe Properties hired CB Richard Ellis Group Inc. to sell his trophy General Motors building at 767 Fifth Ave, which sources said could fetch roughly $3.3 billion to $3.8 billion in today’s market. Macklowe Properties purchased the building for $1.4 billion from Conseco Inc. in 2003.