1301 Avenue of the Americas Expected to Fetch $1.5 B.; Paramount Group in Lead to Land Macklowe Tower

Albert Behler’s Paramount Group is one of the last behemoths standing in the competition to pay $1.5 billion for 1301 Avenue of the Americas, the Credit Lyonnais building that Harry Macklowe surrendered to Deutsche Bank earlier this year.

Mr. Behler, the CEO of Paramount Group, last year snapped up Deutsche Bank’s 31 West 52nd Street for a cool $600 million, and is now “a viable contender” for the Sixth Avenue tower, said a source close to the negotiations. Five to six other bidders are still competing for the tower, but Paramount is rumored to be the likely winner.

If the deal closes—and as one source pointed out, “it could swing a few more directions before this is over”—it would be the second-largest building deal this year, following the recent purchase by Mort Zuckerman’s Boston Properties of the GM Building for around $2.8 billion.

Mr. Macklowe was forced to turn over control of 1301 Avenue of the Americas, along with the other six buildings he bought in February 2007 from Sam Zell’s Equity Office Properties (via Blackstone), to Deutsche Bank this spring, after defaulting on the loans used to purchase them. Mr. Macklowe still reportedly holds the titles to the towers.

The former Equity Office portfolio, all of which Deutsche has put on the block, also includes Tower 56, 527 Madison Avenue, Park Avenue Tower, Worldwide Plaza, 1540 Broadway, and 850 Third Avenue.

drubinstein@observer.com