CRE: More on Macklowe
From the NY Times: Harry Macklowe’s $6.4 Billion Bill.
This is a story we’ve been following because it appears Macklowe bought at the top, and he has a large bill coming due next month for a highly leveraged transaction:
[Macklowe] has a $6.4 billion debt payment coming due next month in connection with his purchase of seven … Midtown Manhattan office buildings a year ago. When he bought those buildings from Equity Office Properties, he … used only $50 million of his own money to do so; he borrowed $7 billion to finance the rest of the purchase.
According to the WSJ, Macklowe paid $6.8 billion for these seven properties, and borrowed a total of $7.6 billion! The NY Times also mentions a couple of other deals in possible trouble:
The Kushner Companies … plunged into the Manhattan real estate market in 2006, paying $1.8 billion for 666 Fifth Avenue, at 53rd […]
Original post by CalculatedRisk
