Harry Macklowe has his back against the ropes facing possible foreclosure on properties as creditors seek repayment. The beleaguered real estate magnet, who last year borrowed $7 billion to purchase seven towers from Equity Office Properties Trust, has been forced to put the famed General Motors Building on the auction block, and there is a Feb. 15 deadline for bids, according to The New York Observer. Real estate insiders have pointed to Boston Properties CEO Mort Zuckerman and developer Sheldon Solow as possible bidders, the Observer said. Another possible bidder is Larry Silverstein.
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Analysts say the 50-story office building, which is home to Weil, Gotshal & Manges, could fetch a record $4 billion but the amount could go as low as $3 billion because of a weak credit market. Macklowe will certainly profit from the sale of the GM Building, which he acquired for a then-record $1.4 billion at auction in 2003 -- interestingly after prior owner insurance company Conseco fell into Chapter 11 bankruptcy protection. - Gerald Magpily
See New York Observer article
See TheDeal.com: Vornado backs Macklowe GM deal
