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 owes hedge fund Fortress Investment Capital $1.2 billion for a loan tied to the same building deal. So he may soon be in default on that one too.
Will he lose his buildings? Stay tuned.