Macklowe Further Consolidates Control Over Drake Hotel Site

The move puts Macklowe Properties a step closer to full control of the building at 38 East 57th Street, which it bought last year for $60 million. Now company head, Harry Macklowe, only has to buy out or remove the remaining commercial sublease tenants in the building before he can demolish the building. A current tenant said less than half the building was occupied.

In February 2007, Macklowe's Dakotah Travel Co. paid $60 million for the 57th Street building in order to include it in the Drake project, but real estate investment firm Sovereign Partners’ East 57th Street Leasehold Owner LLC, holds a lease for the entire building. Sovereign Partners is located in the building.

The 13-story, 30,000-square-foot office tower is the largest of seven buildings along 57th Street that Macklowe has been trying to assemble and then tear down to make way for a hotel and residential condominium. He already owns four of the seven buildings, according to property records, in addition to the Drake Hotel site on 56th Street.

3857 Realty LLC, a company related to Macklowe Properties, closed on the $5.35 million lease transfer October 7, according to the city records. The signatory on the lease transfer was Macklowe Properties’ general counsel, Jason Grebin, identified as vice president of 3857 Realty.