William Macklowe is expected to close by tomorrow on a deal to buy 636 Avenue of the Americas for $45.2 million in a venture with ING Clarion Partners, according to an article by Eliot Brown in today's edition of The Wall Street Journal.
They are paying cash for the six-story building at 19th Street to its existing owners, APF Properties, the article said.
The purchase marks a first step in Mr. Macklowe's attempts to build up his own portfolio of buildings, as he said he wants to continue with acquisitions amid the economic recovery.
"It comes about three years after his family company Macklowe Properties, led by Harry Macklowe, became an early high-profile casualty of the economic downturn and an accompanying lending drought. At the time, the firm crashed into a mountain of troubles when it was unable to refinance $7 billion in short-term loans it used to buy seven office buildings in Manhattan at the markets' peak in early 2007," the article said.
The Macklowes were forced to not only give up the seven towers, but to sell their prized trophy, the GM Building, among other properties.
"The father-son duo then clashed - the younger Mr. Macklowe spoke critically of his father's handling of their debt woes at the time - and earlier this year, the two parted ways. Forming his own company, the William Macklowe Co., Mr. Macklowe took over management of two remaining family-held office buildings at 400 Madison Ave. and 610 Broadway. He says he now wants to focus on buying new buildings and distressed loans, in addition to some lending," the article said.
"We have no legacy issues, everything is behind us," Mr. Macklowe said in an interview late last week. "We have a lot of capacity to go out and do deals, so that's what we're doing. It's a great event for us."
Mr. Macklowe, 42, said he is focused on buying properties where he can add new value. At 636 Avenue of the Americas, he plans to redo the facade, elevators and the lobby, and he is considering adding a penthouse office onto the roof of the 90,000-square-foot building.
The article noted that the "bidding over the building was rather competitive for a secondary market of Midtown south. Marketed by CB Richard Ellis's Darcy Stacom, the building received about 20 bids, according to APF principal Kenneth Aschendorf. 'You had over 65 building tours and over 115 confidentiality agreements signed,' Mr. Aschendorf says. 'It was a very, very strong field.'"
APF paid about $29 million for the corner building in 2004 from Eli Gindi, Alex Adjmi and Ben Ashkenazy who had purchased the building in 2002 for $21,500,000.
They are paying cash for the six-story building at 19th Street to its existing owners, APF Properties, the article said.
The purchase marks a first step in Mr. Macklowe's attempts to build up his own portfolio of buildings, as he said he wants to continue with acquisitions amid the economic recovery.
"It comes about three years after his family company Macklowe Properties, led by Harry Macklowe, became an early high-profile casualty of the economic downturn and an accompanying lending drought. At the time, the firm crashed into a mountain of troubles when it was unable to refinance $7 billion in short-term loans it used to buy seven office buildings in Manhattan at the markets' peak in early 2007," the article said.
The Macklowes were forced to not only give up the seven towers, but to sell their prized trophy, the GM Building, among other properties.
"The father-son duo then clashed - the younger Mr. Macklowe spoke critically of his father's handling of their debt woes at the time - and earlier this year, the two parted ways. Forming his own company, the William Macklowe Co., Mr. Macklowe took over management of two remaining family-held office buildings at 400 Madison Ave. and 610 Broadway. He says he now wants to focus on buying new buildings and distressed loans, in addition to some lending," the article said.
"We have no legacy issues, everything is behind us," Mr. Macklowe said in an interview late last week. "We have a lot of capacity to go out and do deals, so that's what we're doing. It's a great event for us."
Mr. Macklowe, 42, said he is focused on buying properties where he can add new value. At 636 Avenue of the Americas, he plans to redo the facade, elevators and the lobby, and he is considering adding a penthouse office onto the roof of the 90,000-square-foot building.
The article noted that the "bidding over the building was rather competitive for a secondary market of Midtown south. Marketed by CB Richard Ellis's Darcy Stacom, the building received about 20 bids, according to APF principal Kenneth Aschendorf. 'You had over 65 building tours and over 115 confidentiality agreements signed,' Mr. Aschendorf says. 'It was a very, very strong field.'"
APF paid about $29 million for the corner building in 2004 from Eli Gindi, Alex Adjmi and Ben Ashkenazy who had purchased the building in 2002 for $21,500,000.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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