UPDATE FROM 1.6.08 POST …

Tentative Deal to Salvage Real Estate Empire  

According to the New York Times today, the father-and-son Macklowe team of real estate developers who doubled the size of their holdings in a $7 billion deal last year, have reached a tentative agreement to give their lender control of all seven Manhattan skyscrapers purchased in the deal, according to real estate executives.

This story is certainly worth watching, especially for us involved with Commercial Real Estate.

Clearly the banks have no choice, due to the size of the Macklowe’s holdings, but to work with them to some degree, but some say, as they go so goes the market. Will they be able to maintain control of their buildings and their empire?

Stay tuned….

From 1.6.08 MarylandCommercialTitle.com Blog Post >> According to an extensive New York Times expose’ on Harry Macklowe, one of New York City’s (and the nations) largest real estate tycoons – come February ‘08 he’ll owe a whopping $6.4 Billion bill, for properties acquired during the commercial real estate boom.

The question is … can he survive?

His story outlines what he did, how he did it, which banks and hedge funds backed his vision, and what’s to come in the high-flying debt ridden world of investing in property.

This article is both fascinating and a must read for all, especially those involved in this arena on a daily basis.