Harry Macklowe | The New York Observer

Harry Macklowe Tells a Joke, Part II

Tue, 20 Oct 2009 16:08:34 -0400

And he does it again.

Back in July, developer Harry Macklowe made his debut on the very small screen, telling a knee-slapper of a joke for the ever-amusing Web site, OldJewsTellingJokes.com.

Now he's done it again. Or, more precisely, the Web site, whose makers taped Mr. Macklowe telling multiple jokes a while back, has, after a three-month break, posted a second Macklowe howler.

In this bit, Mr. Macklowe regales the audience with the following:

Sam and Becky are...

Debtor's Prison Holds No Place for Kent Swig: A Bankruptcy Case Study

Fri, 25 Sep 2009 08:47:20 -0400

On Sept. 15, developer Kent Swig filed an affidavit with the Manhattan Supreme Court in which he claimed, "I cannot, out of my personal proceeds, satisfy a money judgment of $32,432,288.87 without being subject to extreme financial hardship. I do not have access to $28 million in cash or liquid assets and, if the Judgment is enforced against me at this time, I will likely have to file for personal bankruptcy protection. This will...

The 10 Most Expensive Buildings, Revisited

Tue, 25 Aug 2009 16:06:57 -0400

In April 2007, during those blindered days of economic bluster, The Observer published an article naming New York’s 10 most expensive towers, according to prominent real estate professionals. They agreed on the most valuable single building: the GM Building. That rocket of marble and black glass, considered then and now the most coveted skyscraper in Manhattan, if not the country, was, said one, “worth $4 billion–plus.”

Sure! Why not? The building sits at that delicious...

Finally! George Comfort Clinches Worldwide

Wed, 22 Jul 2009 16:34:34 -0400

At long last, after one of the longer courtships in recent history, George Comfort & Sons has completed its purchase of Harry Macklowe's old Worldwide Plaza, at 825 Eighth Avenue.

Last month, after it was publicly revealed that George Comfort was in contract for the 47-story office complex, after George Comfort and its investment partners had made a very large (between $50 and $100 million) deposit, and after a closing date had been set for...

'Old Jew' Harry Macklowe Tells a Joke (Updated)

Tue, 14 Jul 2009 11:05:47 -0400

It's the biggest Macklowe family news since Harry was forced to hand over New York City's most coveted skyscraper to the uncompromising bean-counters at Deutsche Bank.

OldJewsTellingJokes.com has lured the eminent developer into telling a joke, on camera, for its Web site! And, to be honest, it's kinda funny!

We know this is a strange modifier to apply to a once voracious developer, but in the clip, Mr. Macklowe is adorable. And brave (or tin-eared, take...

Deutsche Know? No We Didn’t! Bank Blindsides Would-Be Buyers of Worldwide Plaza

Wed, 24 Jun 2009 08:45:19 -0400

Deutsche Bank blindsided real estate investors George Comfort & Sons and RCG Longview on Monday, June 22, when they learned—just hours before the Wall Street Journal ran an item leaked by Deutsche through their broker Eastdil Secured—that the bank was backing out of its deal to sell a controlling interest in Harry Macklowe’s old Worldwide Plaza. Sources involved said even some Deutsche players were taken aback.

George Comfort and his partners had already made a...

CBRE Investors Closes on 1540 Broadway Stake, Sealing Largest Building Deal of '09

Thu, 05 Mar 2009 18:18:46 -0500

The largest building transaction of the year in New York City (minus the Sotheby's sale-leaseback) has closed.

CB Richard Ellis Investors officially bought a majority condo interest in 1540 Broadway today, according to a release just issued by the investment fund's media department.

The Observer on Wednesday reported that the deal involving the 44-story, Times Square property was likely to close Thursday. Sources continue to put the price at about $355 million. CBREI's spokeswoman declined to...

CBRE Investors Set To Close on Macklowe's Old 1540 Broadway

Wed, 04 Mar 2009 19:29:22 -0500

CB Richard Ellis Investors, the investment fund run by mega-brokerage CB Richard Ellis, is set to close as early as Thursday on 1540 Broadway, one of the last remnants of Harry Macklowe's once mighty midtown empire, sources say.

The price is said to be around $355 million. Macklowe Properties purchased the tower in February 2007 in a deal that valued it at $950 million, or $1,079.55 per square foot of office space, according to The...

DekaBank Signs Lease in 1330 Sixth; Had Sold It to Macklowe in ’07

Tue, 28 Oct 2008 19:25:14 -0400

In 2007, after selling the Financial Times Building on Sixth Avenue to Harry Macklowe for a sizable $498 million, DekaBank receded from the New York real estate scene. Now the German bank is coming back, and not just to New York. The bank is actually reclaiming some of 1330 Avenue of the Americas—this time as tenants, not landlords.

DekaBank has signed a seven-year, 3,760-square-foot lease on the 23rd floor of the 40-story...

Real Estate Heavies Pick '08 Favorites

Tue, 23 Sep 2008 18:28:30 -0400

Finally, the dithering has stopped! New York City’s real estate deciders are at last grappling with the monumental decision at hand come November: Do we want an Illinoisan or an Arizonan in the White House?

It’s taken them a while. Last we checked, in mid-July, campaign finance records showed few developers and landlords had contributed to either McCain or Obama (though plenty had donated to the coffers of hometown favorites Hillary and...

How Rich Are New York's Real Estate Developers?

Thu, 18 Sep 2008 12:49:05 -0400

Pretty gosh darned rich, according to Forbes magazine.

Twelve of New York’s celebrated real estate titans bought, sold and leveraged their way onto or up Forbes' 2008 list of the 400 wealthiest Americans. While the vast sums of wealth are truly staggering, New York’s wealthy real estate developers still lag far behind the big players on Wall Street; in fact, no real estate developer was rich enough to crack America’s top 50–-Paul Milstein...

Schadenfreude Over Macklowe's Drake Troubles

Thu, 04 Sep 2008 00:13:21 -0400

"Serves them right for tearing down such a wonderful hotel to build another ugly residential property." ["Deutsche Sues to Foreclose on Macklowe's Drake Hotel...

Old Macklowe Midtown Towers Search for Closure

Tue, 02 Sep 2008 19:29:27 -0400

Billy Macklowe may have deposed his father, Harry, and their overleveraged troubles may have become yet another chapter in the New York City’s rich history of fortunes won, fortunes lost and fortunes just barely rescued, but the detritus of the Macklowe midtown empire lives on in a state of purgatory.

Nary a peep has been heard in recent months about the four remaining towers that Deutsche Bank put on the block...

Macklowe Moves on Drake Site, Buys Out Sole Tenant in 40 East 57th

Tue, 01 Jul 2008 19:45:51 -0400

Under the new leadership of the dashing Billy Macklowe, Macklowe Properties appears to be lumbering ahead with its complicated and complication-ridden Drake Hotel development.

Either that, or Macklowe Properties is busy assembling a more lucrative parcel in the East 50s around Park Avenue to put on the market—Macklowe was reportedly considering selling the mega-site in May, before successfully selling the GM Building to Mort Zuckerman’s Boston Properties for a record-breaking $2.8 billion.

Billy Macklowe Officially Takes Charge of Macklowe Properties

Thu, 12 Jun 2008 14:43:15 -0400

In the wake of his father Harry's near disastrous over-leveraging of the family business, Billy Macklowe has officially been named Macklowe Properties' new chairman and CEO. He has been working with his father since 1992, after a stint as a real estate finance analyst for Manufactures Hanover.

His father Harry has been named Chairman Emeritus of the firm.

The father and son were said to have a fractious relationship, which, according to a recent Wall...

Two Macklowe Towers Sell for Just Under $1 B.; Another To Go for $1.45 B.

Tue, 10 Jun 2008 19:34:26 -0400

Domestic players have bought three huge midtown towers once belonging to the beleaguered Macklowe Properties.

Shorenstein Properties has bought Park Avenue Tower and 850 Third Avenue for just shy of $1 billion.

Shorenstein, the San Francisco-based real estate investment firm, bought a 94.5 percent interest in 850 Third, valued at about $300 million, and Park Avenue Tower at 65 East 55th Street, valued at about $630 million, according...

Zuckerman: GM Building Deal 'Closing As We Speak'

Mon, 09 Jun 2008 13:34:13 -0400

The GM Building sale is "closing as we speak." That's according to Mort Zuckerman, who is addressing a Real Estate Board of New York luncheon this afternoon.

Mr. Zuckerman's Boston Properties, along with partners including Goldman Sachs, negotiated the purchase of the Macklowe Properties building late last month in a deal that valued it at around $2.8 billion. It's the most expensive building sale ever....

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

Tue, 03 Jun 2008 18:34:52 -0400

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,...

Crusading Law Firm Doubles Presence in Macklowe's Tower 56

Tue, 03 Jun 2008 18:30:52 -0400

Mark Lanier, the 47-year-old attorney who litigated his way to CNBC fame by taking on Merck’s dreaded Vioxx, and who’s now representing sugar-cane farmers in their suit against Splenda, is doubling the size of his footprint in Harry Macklowe’s Tower 56.

Mr. Lanier’s firm, the Lanier Law Firm, just signed a 10-year lease renewal and expansion for his offices in the skinny cloud-buster at 126 East 56th Street.

It...

The Local: GM Building, One Week After

Thu, 29 May 2008 18:44:43 -0400

The first few days after the biggest U.S. building sale ever was inked, things at the GM Building were “pretty much routine” in the words of one doorman, save for the presence of a few unofficial, four-legged tenants seen scampering among the stuffed animals at FAO Schwartz.

Not many people who work at the GM Building appeared to notice that Harry Macklowe had hammered out a deal with Mort Zuckerman and partners on Saturday to...

GM Building Buy Assuages Market Doubts

Tue, 27 May 2008 19:19:09 -0400

Harry Macklowe’s early morning Saturday sale of the GM Building and three other midtown towers to a group led by Mort Zuckerman’s Boston Properties did more than just yank New York’s most virile phallus from the market. The GM Building deal slaughtered what had become a favorite scapegoat among brokers for the dip in Manhattan building sales: that investors, bewildered by the credit crisis and unsure how to price their buildings, were waiting for...

Billy Batting for Harry

Tue, 27 May 2008 10:14:21 -0400

Billy Macklowe, president of Macklowe Properties since 2002, is expected in the next few weeks to succeed his father as chairman of the firm, according to the Wall Street Journal this morning.

The succession, not entirely voluntary on Harry's part, is fallout from the nearly $4 billion deal cut over the weekend that cost the Macklowes ownership of their jewel, the GM Building at 767 Fifth Avenue, as well as three other Midtown towers.

That...

Zuckerman on The Credit Crisis

Mon, 26 May 2008 12:34:15 -0400

Here's a clip from January of Mort Zuckerman, a regular on The McGlaughlin Group (we're surprised, too).

Mr. Zuckerman's comments on the credit crisis and how that helped tank the economy seems today especially relevant and perhaps a bit ironic, given how all that played into his acquisition over the weekend of Harry Macklowe's GM Building and three other Midtown towers.

When he says, "we were way over-leveraged," we know he's talking about the American...

Zuckerman and Partners Buying GM Building for $2.9 B.

Sat, 24 May 2008 18:54:57 -0400

A group led by Boston Properties chairman and Daily News publisher Mort Zuckerman is set to buy the GM Building from the embattled Harry Macklowe for about $2.9 billion, according to a Saturday morning announcement from Mr. Zuckerman's firm. (The announcement can be read here.) It is the biggest building sale in U.S. history, trumping the $1.8 billion deal for 666 Fifth Avenue, which closed in early 2007.

Mr. Zuckerman's group, which includes Goldman Sachs...

Tick-Tock, Tick-Tock: Still No Macklowe-Zuckerman Announcement, Despite Reports

Fri, 23 May 2008 11:23:59 -0400

Still waiting...

Two days after the New York Post declared an announcement was imminent about Mort Zuckerman's effort to buy Harry Macklowe's GM Building (and assorted other towers), we're still waiting.

"[W]e should learn all of the details today, when the pact is due to be announced," the Post reported on Wednesday.

Sorry to sound so impatient, but what a tease!

We'll touch base later....

No Macklowe-Zuckerman Announcement, Despite Reports

Thu, 22 May 2008 09:41:32 -0400

"[W]e should learn all of the details today, when the pact is due to be announced," the New York Post declared on Wednesday, referring to the ongoing negotiations between Mort Zuckerman's Boston Properties and Harry Macklowe over the fate of his beloved GM Building and four other Manhattan towers.

But, like with much of the Macklowe saga, now in its fourth month, fresh news remained scarce. Yesterday passed with nary a peep from Mr. Macklowe...

The Macklowe Deals: What We Know (and Don't Know)

Wed, 21 May 2008 16:06:44 -0400

Harry Macklowe, the troubled real estate mogul desperately trying to extricate himself from a morass of debt obligations by selling off stakes in his GM Building, the Equity Office portfolio he bought from Blackstone last year, and other Manhattan properties, is back in the news.

The New York Post ran big today with the headline, “Macklowe finds a way out,” with the Wall Street Journal running a...

Report: Macklowe's Drake Site On The Block

Fri, 16 May 2008 13:18:31 -0400

From the Post today:

A partnership of Kirk Kerkorian's MGM Mirage and investment company Dubai World has held discussions about buying the Drake Hotel site from developer Harry Macklowe...

While it's unclear if the MGM group will beat competing offers, sources familiar with the situation said the partnership would take over the existing $580 million in defaulted debt and interest, making the payments for the 12 months to 18 months until a construction...

'Blood in the Water' Surrounds Elusive Macklowe

Tue, 06 May 2008 19:35:51 -0400

Where’s Harry Macklowe?

Has the once mighty real estate titan taken a wind-powered voyage on his sailboat, Unfurled, to some mysterious locale still untouched by rumors of his catastrophic fall from the acme of Manhattan real estate?

More likely, he’s in a well-appointed office in one of his manifold trophy buildings, hammering out some sort of ingenious deal to save himself from his $7 billion worth of debt,...

Silverstein Bids on Macklowe's Credit Lyonnais Building

Wed, 30 Apr 2008 17:12:28 -0400

Fifteen minutes ago was the deadline for developers to bid on one of Manhattan's prime trophy properties -- 1301 Avenue of the Americas, also known as the Credit Lyonnais Building, at the corner of 52nd Street.

The cloud-buster is one of the seven so-called "Equity Portfolio" properties that beleaguered mogul Harry Macklowe bought last year for $7 billion (in those bubbly days, he only had to put down $50 million of his own money). Now...

Dick Affidavit: Soros Acted Like a (Private) Dick [UPDATED]

Thu, 10 Apr 2008 16:39:56 -0400

If you needed any reminder that the fog of litigation clouding the allegedly “fraudulent” sale of the GM Building to Harry Macklowe in 2003 involves actual people, rife with human intrigue, here’s a reminder from an affidavit signed by real estate developer and investor Leslie Dick.

We know it's confusing; but first, some background: Mr. Dick alleges that celebrity financier George Soros rigged bidding so that the trophy building...

1301 Avenue of the Americas: A Record Waiting to Happen?

Tue, 08 Apr 2008 10:05:53 -0400

Eastdil Secured has been hired to market Harry Macklowe's 1.765 million-square-foot office tower at 1301 Avenue of the Americas, according to the Post. The tower could set a single-building sales record, even in this cooling investment sales climate.

If it gets anywhere over $1,000 a square foot--eminently possible for a top-shelf Midtown building--1301 Avenue of the Americas could sell for at least $1.765 billion, which would put it just a shade below the all-time building...

The Local: In Turtle Bay, Anger, Denial, Bargaining, Acceptance

Fri, 28 Mar 2008 00:05:45 -0400

For many Turtle Bay residents, the fatal crane collapse at 303 East 51st Street on March 15 was more than just an accident that should have been prevented: It was three years of frenzied residential development come home to roost.

A New York Post column published the morning after began, “Katherine Hepburn must be turning in her grave,” in reference to the late actress and one of the more famous Turtle Bay locals. “Shoddy...

Report: Cayre Out of GM Building Bidding

Thu, 06 Mar 2008 15:16:00 -0500

Real estate investor--and Sears Tower co-owner--Joseph Cayre has dropped out of the bidding for Harry Macklowe's General Motors Building at 767 Fifth Avenue, according to Crain's, which cites a source with knowledge of the deal.

The second round of bids were due today. With Mr. Cayre out, there may be only two bidders left, including Larry Silverstein. The GM Building would likely fetch over $3 billion if sold in full--apparently a price tag too...

Sheldon Solow Sues (Again) Over GM Building as Sale Nears

Wed, 05 Mar 2008 16:13:27 -0500

My, Sheldon Solow is busy these days.

It’s now the 11th hour for his $4 billion East River development, which faces an up or down vote before the City Council tomorrow; and best and final bids are due tomorrow for one of the country’s most watched skyscrapers, the GM Building, a tower Mr. Solow claims he rightfully owns.

With debt-troubled owner Harry Macklowe seemingly closing in on a...

Manhattan Mega-Sales Market Hits Snooze; Will Macklowe Schedule Spring Wake-Up Call?

Tue, 04 Mar 2008 18:31:03 -0500

For the first two months of 2008, the Manhattan landscape for big-building sales has been an arid one, as rattled lenders and wary sellers sit tight amid the credit drought.

Manhattan has seen only one sale over $400 million since the end of 2007, a year when such sales poured forth on a monthly, if not weekly, basis. That one purchase, of 650 Madison Avenue by Ashkenazy Acquisition Corp. for $695...

A Victory of Sorts for Macklowe

Wed, 27 Feb 2008 10:57:10 -0500

Embattled landlord Harry Macklowe has closed in on an extension to repay billions in loans he took last February to buy seven Manhattan office buildings. Jennifer S. Forsyth reports in the Wall Street Journal this morning that Mr. Macklowe has neared an agreement with lender Deutsche Bank to turn over control of the buildings in exchange for a six- to 12-month extension.

Deutsche had sold some of the debt to smaller lenders, including Vornado...

Who Is Joseph Cayre?

Wed, 20 Feb 2008 12:26:14 -0500

A reported bidder for the GM Building, Joseph Cayre, is not usually mentioned in the same breath as the usual real estate bigwigs (Jerry Speyer, Steven Roth, etc.), but the investor is hardly a small player. The Wall Street Journal’s Jennifer Forsyth brings us the news today that Mr. Cayre was one of at least three bidders offering more than $3 billion for Harry Macklowe’s GM Building at 767 Fifth Avenue; Larry Silverstein was...

Macklowe Gets Extension from Lenders

Fri, 15 Feb 2008 19:30:16 -0500

Harry Macklowe, struggling with $7 billion of debt come due, has reached an extension agreement with his lenders, according to a statement put out by his spokesman, Howard Rubenstein.

Mr. Macklowe, who is taking bids today for his prized GM Building, was granted extensions of unspecified terms by both Deutsche Bank and Fortress Investment Group, his principal lenders, according to Mr. Rubenstein. Repayments on much of Mr. Macklowe’s debt were due...

02.21.07: When The Good News Stopped for Macklowe

Fri, 15 Feb 2008 14:23:45 -0500

We're still trying to find out who has bid initially for Harry Macklowe's GM Building. The first round of bids was due today. Mr. Macklowe needs the money from the sale of arguably the world's most valuable office tower to pay off $7 billion in debt from a purchase of seven Manhattan office buildings last February...

Which brings us to this: The last media story mentioned and linked to from the Macklowe Properties' Web site...

Macklowe Watch: First Round

Fri, 15 Feb 2008 08:54:05 -0500

The first round of bids are due today for Harry Macklowe's GM Building at 767 Fifth Avenue. Who will bid?

Just to bring you up to speed: Mr. Macklowe, one of the most well-known developers and landlords (and one of the most controversial) in New York since the 1980's bought seven Manhattan office buildings last winter for nearly $7 billion. He put up a very small amount of that money himself and borrowed the...

STAT OF THE DAY: Karma's A...

Thu, 14 Feb 2008 16:47:44 -0500

Many expect the GM Building to sell for at least $3 billion (The Times referenced $3.5 billion this morning). If it does go for $3.5 billion, that will mean it will have sold for over $1,900 a foot--and that would mean it will set a new price-per-foot record for American office buildings. That distinction currently belongs to 450 Park Avenue, which traded last year for just under $1,600 a foot.

Ironically enough, 450 Park...

The GM Building in Winter, Part II: Macklowe Looks 'Like He Hasn't Slept in Days'

Thu, 14 Feb 2008 13:39:11 -0500

Even businessmen at the GM Building this afternoon were unaware of the tower's impending sale by owner Harry Macklowe, which doesn't quite signal stellar newspaper consumption levels in New York.

A group of smokers outside had no idea; but even if the building is sold (bids are due tomorrow), one man said, his firm has a 10-year lease so it makes no difference. Without breaking his purposeful stride to lunch another, Wall Street type shouted...

The GM Building in Winter, Part I: On Bidding's Eve

Thu, 14 Feb 2008 12:06:15 -0500

I'm blogging from the Apple Store in the GM Building the day before bids are due for Harry Macklowe's gem at 767 Fifth Avenue. Aside from a photographer looming around, brandishing a press pass, it's business as usual here. The store is packed with tourists, teens, and that enigmatic breed of New Yorker which can afford to spend days frittering on laptops or attending matinees.

Employees at the Apple Store, one of Mr. Macklowe's...

Macklowe Watch: You Name It!

Thu, 14 Feb 2008 08:29:52 -0500

Everyone knows Harry Macklowe's selling the GM Building to raise money to pay off his debts. The bids for the iconic tower are due tomorrow, and one of the enticements Mr. Macklowe offers bidders is the prospect of rebranding the 50-story tower at the southeast corner of Central Park. The New York Times reports this morning that General Motors' contractual naming rights for the tower expire in 2010. After that, it's anyone's game if...

Macklowe Watch: Talks Continue; Zuckerman Sends Regards

Wed, 13 Feb 2008 09:08:36 -0500

Talks continue between Harry Macklowe and his creditors over the $7 billion in debt he owes connected to his purchase of seven Manhattan buildings last February. Otherwise, no new news to report this morning.

But my colleague, Eliot Brown, has a story in today's Observer about Mort Zuckerman's coy interest in Mr. Macklowe's GM Building, which he put on the market in January as a possible way to pay off some of the debt. ...

Macklowe Watch: A Default Notice, Vornado Turns the Screw

Tue, 12 Feb 2008 08:54:51 -0500

Harry Macklowe has been served a default notice, according to reports, and could face foreclosure on some of the seven Manhattan buildings he bought last winter for $7 billion. Mr. Macklowe could not reach an agreement with some lenders to get an extension on $3.1 billion in debt on four of the buildings.

He has apparently reached a deal with his primary lender, Deutsche Bank, on $5.8 billion of the debt that involves him...

Macklowe Watch: Technical Default, Talks Continue

Mon, 11 Feb 2008 08:14:23 -0500

Harry Macklowe is in default, according to reports. The landlord owed Deutsche Bank on Saturday $5.8 billion for a loan he took last winter to buy seven Manhattan office buildings for $7 billion. Mr. Macklowe is reportedly still in talks with the bank and a group of subordinate lenders on a repayment plan, but he's technically in default on the loan, according to sources quoted by the Wall Street Journal.

Also, by tomorrow, he...

STAT OF THE DAY: Zero Hour for Harry Macklowe

Fri, 08 Feb 2008 14:26:15 -0500

We've all been following the travails of Harry Macklowe, the mighty landlord who entered 2007 with a big-bang buy of seven Manhattan office buildings for $7 billion. A year later, Mr. Macklowe owes his lenders on the deal $7 billion (though some reports put the amount at $6.4 billion) and the bill's due tomorrow. (Actually, according to a thorough rundown in the Wall Street Journal, it's due today because the banks are closed tomorrow.)...

Report: Macklowe Selling GM Building This Month

Fri, 01 Feb 2008 15:11:52 -0500

Bloomberg News is reporting that Harry Macklowe plans to sell the GM Building this month. Bids for the 50-story building, arguably the world's most valuable, are due on Feb. 15. And Mr. Macklowe owes billions to his creditors by Feb. 9 (or they need to give him an extension by that date).

So the timing for a multi-billion-dollar sale of the GM Building at 767 Fifth Avenue would not be more opportune for the embattled...