Did Harry Macklowe overstep his bounds earlier this year?
A recent issue of Commercial Mortgage Alert says that the Manhattan developer could lose all those properties that he acquired for $7 billion back in February.
In order to get the $6.9 billion debt package for the acquisition, Mr. Macklowe had to put up his stake in the General Motors building at 767 Fifth Avenue. Commercial Mortgage Alert now reports that, with the market deep in a “credit crunch,” Mr. Macklowe may be in a very tough spot when it comes to raising enough money to refinance.
From Commercial Mortgage Alert:
The problem for Macklowe is that the financing package, which includes $3.4 billion of high-cost preferred equity, comes due in just six months. Given the marked change in the lending environment, it seems unlikely that Macklowe would be able to raise anywhere near enough to refinance.
“If Macklowe can’t pay back Fortress… they can take his world,” said one source familiar with the situation.