Real-Estate Credit Crisis Squeezes Macklowe

February 1, 2008
Real-Estate Credit Crisis Squeezes Macklowe

BY JENNIFER S. FORSYTH

New York real-estate titan Harry Macklowe has reached a tentative agreement with his lender to turn over effective control of seven Manhattan office buildings he acquired less than a year ago for $7 billion, according to people familiar with the matter.

http://online.wsj.com/article/SB120181345769733089.html

Mr. Macklowe borrowed $5.8 billion from Deutsche Bank AG to acquire the buildings in a highly leveraged transaction during the height of the real-estate frenzy early last year. The debt is scheduled to come due on Feb. 9. But with the real-estate debt market constricted by the credit crunch, Mr. Macklowe has found no way to refinance that debt.

http://online.wsj.com/article/SB120181345769733089.html