GM Building
GM Building May Drop 'GM' Moniker
The GM Building, the tower that Mort Zuckerman's Boston Properties this week closed on for a record-breaking $2.8 billion, may no longer be known as the GM Building.
Just minutes ago, in a Boston Properties investors conference call to discuss the acquisition, president Douglas Linde said the GM Building's name may officially change, since General Motors -- which moved its headquarters there 40 years ago --is moving its remaining three floors, more than 100,000 square feet, from the marble tower to the Citigroup Center, another Boston Properties tower, also in Midtown. read more »
Zuckerman Would Be Crazy To Run for Mayor, Zuckerman Says
Boston Properties chairman Mort Zuckerman appeared on Fox Business Channel on Wednesday. He talked about his record buy of the GM Building, the development at the World Trade Center site, and the foreign investment in city real estate. He also, apropos of nothing (as far as we can tell), took himself out of the 2009 mayoral campaign:
“If you ever hear anybody or me talking about that, you have the right to send me to a serious shrink.”
Chasing The Why of The GM Building Deal
My colleague Dana Rubinstein has inside details about the record GM Building deal in today's Observer.
The Wall Street Journal asks the burning question: Why did Mort Zuckerman and partners pay so much for a tower where most of the leases are locked in for several more years? read more »
Zuckerman Exhales: GM Building Deal Closes
“I got great sleep last night,” Mort Zuckerman said on Tuesday afternoon, the day after he and his partners closed on the most expensive single-building purchase ever. Nine hours of sleep, no less.
As chairman of Boston Properties, Mr. read more »
City Deeds Suggest a Finished GM Building Deal
Early on Tuesday afternoon, Mort Zuckerman told a REBNY luncheon that he and his partners were closing on the approximately $2.8 billion purchase of the GM Building "as we speak."
At 4:38 p.m., a deed hit city records marking a $690 million transaction between Mr. Zuckerman's group and Macklowe Properties, the former owner of the GM Building, for the office tower at 761 Fifth Avenue (an address for the GM Building). read more »
Zuckerman: GM Building Deal 'Closing As We Speak'
The GM Building sale is "closing as we speak." That's according to Mort Zuckerman, who is addressing a Real Estate Board of New York luncheon this afternoon.
Mr. Zuckerman's Boston Properties, along with partners including Goldman Sachs, negotiated the purchase of the Macklowe Properties building late last month in a deal that valued it at around $2.8 billion. It's the most expensive building sale ever.
GM Building Deal Could Close Next Week, FAO Schwarz May Get Booted
Mort Zuckerman doesn't screw around.
His Boston Properties could close as early as next week on its $2.8 billion purchase of the GM Building, according to Reuters.
Just as intriguing, Reuters is reporting that Boston Properties is considering buying out the remainder of FAO Schwarz's lease on the ground floor, and the leases of other below-market tenants: read more »
The Local: GM Building, One Week After
The first few days after the biggest U.S. building sale ever was inked, things at the GM Building were “pretty much routine” in the words of one doorman, save for the presence of a few unofficial, four-legged tenants seen scampering among the stuffed animals at FAO Schwartz.
Not many people who work at the GM Building appeared to notice that Harry Macklowe had hammered out a deal with Mort Zuckerman and partners on Saturday to sell the jewel in his real estate crown for about $2.8 billion. By now, longtime GM tenants have surely grown accustomed to a changing of the guard every so often. Manhattan's most expensive office tower has had four different owners since 1991—five if you count Sheldon Solow—some of whom have shaken things up, and others less so. read more »
GM Building Buy Assuages Market Doubts
Harry Macklowe’s early morning Saturday sale of the GM Building and three other midtown towers to a group led by Mort Zuckerman’s Boston Properties did more than just yank New York’s most virile phallus from the market. The GM Building deal slaughtered what had become a favorite scapegoat among brokers for the dip in Manhattan building sales: that investors, bewildered by the credit crisis and unsure how to price their buildings, were waiting for Mr. Macklowe to trade and show them the way. read more »
Billy Batting for Harry
Billy Macklowe, president of Macklowe Properties since 2002, is expected in the next few weeks to succeed his father as chairman of the firm, according to the Wall Street Journal this morning.
The succession, not entirely voluntary on Harry's part, is fallout from the nearly $4 billion deal cut over the weekend that cost the Macklowes ownership of their jewel, the GM Building at 767 Fifth Avenue, as well as three other Midtown towers. read more »
Zuckerman on Zuckerman The Landlord
GM Building buyer Mort Zuckerman sat down last October with The Observer's John Koblin to talk shop, particularly real estate (and some media--the Daily News publisher doesn't care much for the American press).
Here's what Mr. Zuckerman had to say about why he does what he does as chairman of Boston Properties:
So you’re saying you’re happy? read more »
Zuckerman and Partners Buying GM Building for $2.9 B.
A group led by Boston Properties chairman and Daily News publisher Mort Zuckerman is set to buy the GM Building from the embattled Harry Macklowe for about $2.9 billion, according to a Saturday morning announcement from Mr. Zuckerman's firm. (The announcement can be read here.) It is the biggest building sale in U.S. history, trumping the $1.8 billion deal for 666 Fifth Avenue, which closed in early 2007.
Mr. Zuckerman's group, which includes Goldman Sachs and Morgan Stanley as investors and advisers, also is set to buy three other midtown towers belonging to Mr. Macklowe: 540 Madison Avenue, a 39-story building at 55th Street; 125 West 55th Street, a 23-story building between Sixth and Seventh avenues; and the 44-story Two Grand Central Tower between Lexington and Third avenues.
The four-tower deal, according to Boston Properties, totals approximately $3.949 billion, including $1.4655 billion in cash and the assumption of $2.4735 billion in fixed-rate debt. The sale of the GM Building is expected to close in June and the others shortly after. read more »
Tick-Tock, Tick-Tock: Still No Macklowe-Zuckerman Announcement, Despite Reports
Still waiting...
Two days after the New York Post declared an announcement was imminent about Mort Zuckerman's effort to buy Harry Macklowe's GM Building (and assorted other towers), we're still waiting.
"[W]e should learn all of the details today, when the pact is due to be announced," the Post reported on Wednesday.
Sorry to sound so impatient, but what a tease!
We'll touch base later.
No Macklowe-Zuckerman Announcement, Despite Reports
"[W]e should learn all of the details today, when the pact is due to be announced," the New York Post declared on Wednesday, referring to the ongoing negotiations between Mort Zuckerman's Boston Properties and Harry Macklowe over the fate of his beloved GM Building and four other Manhattan towers.
But, like with much of the Macklowe saga, now in its fourth month, fresh news remained scarce. Yesterday passed with nary a peep from Mr. Macklowe or Mr. Zuckerman. read more »
The Macklowe Deals: What We Know (and Don't Know)
Harry Macklowe, the troubled real estate mogul desperately trying to extricate himself from a morass of debt obligations by selling off stakes in his GM Building, the Equity Office portfolio he bought from Blackstone last year, and other Manhattan properties, is back in the news.
The New York Post ran big today with the headline, “Macklowe finds a way out,” with the Wall Street Journal running a very similar story, “Goldman, Boston Properties, Others in Talks to Buy Macklowe’s GM Building.”
It was the first spot of new news on Macklowe in months, or so it seemed. But how has it changed what we know, and what we don’t know, about the elusive Mr. Macklowe?
Here’s a breakdown of what we've known for a while. After that, we give you a run-down of the "news" in the Post and Wall Street Journal's coverage. read more »
Big Manhattan Law Firm Exits GM Building for ... Downtown Brooklyn
The largest tenant in the GM Building is relocating a portion of its operations from the gilded midtown tower to the decidedly humbler environs of downtown Brooklyn.
Weil, Gotshal & Manges, a global law firm with a New York staff of 1,300, has signed a lease for 35,000 square feet at Brooklyn’s 15 Metrotech Center, owned by read more »
Dick Affidavit: Soros Acted Like a (Private) Dick [UPDATED]
If you needed any reminder that the fog of litigation clouding the allegedly “fraudulent” sale of the GM Building to Harry Macklowe in 2003 involves actual people, rife with human intrigue, here’s a reminder from an affidavit signed by real estate developer and investor Leslie Dick.
We know it's confusing; but first, some background: Mr. Dick alleges that celebrity financier George Soros rigged bidding so that the trophy building would end up in Mr. Macklowe's hands. We'll get into the nitty gritty of that some other time. The real point of this post is to share the following juicy tidbit from the affidavit: Mr. Dick claims that, after he wrote Mr. Soros in November 2003 expressing his concern about the sale, Mr. Soros spied on him. read more »
Remember the GM Building? Mort Zuckerman Does
The Slatin Report has the first piece of fresh news in a long while about the possible sale of Harry Macklowe's GM Building. You'll remember it went on the market in January; and then two quick rounds of bids were done by early March. And then... well, not much beyond speculation.
Which brings us to today's news: Daily News publisher and Boston Properties chairman Mort Zuckerman is "the last man standing" in the fight to get the GM Building. And he may have to pay as much as $2.9 billion for it, which would make it the biggest single-building sale ever (that much we expected).
What's unexpected is Mr. Zuckerman himself. The Observer reported in early February that he was considering a bid for the building. "It's a terrific building without question," Mr. Zuckerman told our Eliot Brown then. Later, however, The New York Sun reported that Mr. Zuckerman was, in fact, not involved in the first round of bids. read more »
If Mort Zuckerman Buys the G.M. Building, Can He Still Afford Newsday?
The ever-reliable Peter Slatin is reporting today that Mort Zuckerman is the "last man standing" in the push to buy the G.M. Building on Fifth Avenue. The potential sale price? $2.9 billion. read more »
Report: Cayre Out of GM Building Bidding
Real estate investor--and Sears Tower co-owner--Joseph Cayre has dropped out of the bidding for Harry Macklowe's General Motors Building at 767 Fifth Avenue, according to Crain's, which cites a source with knowledge of the deal.
The second round of bids were due today. With Mr. Cayre out, there may be only two bidders left, including Larry Silverstein. The GM Building would likely fetch over $3 billion if sold in full--apparently a price tag too steep for Mr. Cayre. read more »
Sheldon Solow Sues (Again) Over GM Building as Sale Nears
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My, Sheldon Solow is busy these days.
It’s now the 11th hour for his $4 billion East River development, which faces an up or down vote before the City Council tomorrow; and best and final bids are due tomorrow for one of the country’s most watched skyscrapers, the GM Building, a tower Mr. Solow claims he rightfully owns. read more »
A Victory of Sorts for Macklowe
Embattled landlord Harry Macklowe has closed in on an extension to repay billions in loans he took last February to buy seven Manhattan office buildings. Jennifer S. Forsyth reports in the Wall Street Journal this morning that Mr. Macklowe has neared an agreement with lender Deutsche Bank to turn over control of the buildings in exchange for a six- to 12-month extension.
Deutsche had sold some of the debt to smaller lenders, including Vornado Realty Trust, which had refused to go along with the extension plan. Apparently, Steve Roth's Vornado has come onboard and the plan is moving forward.
Mr. Macklowe also took a personally guaranteed loan of $1.2 billion from Fortress Investment Group for last February's deal. That loan has grown to $1.4 billion with interest, but Mr. Macklowe reached an extension with Fortress, too. read more »
Round Two on GM Building Bidding Set for March 6
Macklowe madness could come to a head as early as next week. read more »
Who Is Joseph Cayre?
A reported bidder for the GM Building, Joseph Cayre, is not usually mentioned in the same breath as the usual real estate bigwigs (Jerry Speyer, Steven Roth, etc.), but the investor is hardly a small player. The Wall Street Journal’s Jennifer Forsyth brings us the news today that Mr. Cayre was one of at least three bidders offering more than $3 billion for Harry Macklowe’s GM Building at 767 Fifth Avenue; Larry Silverstein was another. read more »
02.21.07: When The Good News Stopped for Macklowe
We're still trying to find out who has bid initially for Harry Macklowe's GM Building. The first round of bids was due today. Mr. Macklowe needs the money from the sale of arguably the world's most valuable office tower to pay off $7 billion in debt from a purchase of seven Manhattan office buildings last February...
Which brings us to this: The last media story mentioned and linked to from the Macklowe Properties' Web site (under the "Macklowe News" tab) is one by The New York Times from Feb. 21, 2007, trumpeting the triumph that was that building-portfolio buy. read more »
Macklowe Watch: First Round
The first round of bids are due today for Harry Macklowe's GM Building at 767 Fifth Avenue. Who will bid?
Just to bring you up to speed: Mr. Macklowe, one of the most well-known developers and landlords (and one of the most controversial) in New York since the 1980's bought seven Manhattan office buildings last winter for nearly $7 billion. He put up a very small amount of that money himself and borrowed the rest, including $1.2 billion, which he personally guaranteed and which happens to be about half the current market value of the GM Building. So... here we are. read more »
STAT OF THE DAY: Karma's A...
Many expect the GM Building to sell for at least $3 billion (The Times referenced $3.5 billion this morning). If it does go for $3.5 billion, that will mean it will have sold for over $1,900 a foot--and that would mean it will set a new price-per-foot record for American office buildings. That distinction currently belongs to 450 Park Avenue, which traded last year for just under $1,600 a foot.
Ironically enough, 450 Park stands next to a development site owned by Harry Macklowe, the GM Building's embattled owner. read more »
The GM Building in Winter, Part II: Macklowe Looks 'Like He Hasn't Slept in Days'
Even businessmen at the GM Building this afternoon were unaware of the tower's impending sale by owner Harry Macklowe, which doesn't quite signal stellar newspaper consumption levels in New York.
A group of smokers outside had no idea; but even if the building is sold (bids are due tomorrow), one man said, his firm has a 10-year lease so it makes no difference. Without breaking his purposeful stride to lunch another, Wall Street type shouted over his shoulder, "I don't know anything about the sale, I'm just one of the investors involved." read more »
The GM Building in Winter, Part I: On Bidding's Eve
I'm blogging from the Apple Store in the GM Building the day before bids are due for Harry Macklowe's gem at 767 Fifth Avenue. Aside from a photographer looming around, brandishing a press pass, it's business as usual here. The store is packed with tourists, teens, and that enigmatic breed of New Yorker which can afford to spend days frittering on laptops or attending matinees.
Employees at the Apple Store, one of Mr. Macklowe's prime retail tenants, seem equally oblivious to the drawn-out saga that will race toward culmination tomorrow. read more »
Macklowe Watch: You Name It!
Everyone knows Harry Macklowe's selling the GM Building to raise money to pay off his debts. The bids for the iconic tower are due tomorrow, and one of the enticements Mr. Macklowe offers bidders is the prospect of rebranding the 50-story tower at the southeast corner of Central Park. The New York Times reports this morning that General Motors' contractual naming rights for the tower expire in 2010. read more »
GM Building Drama! Zuckerman Hints at Bid
Is Mort Zuckerman planning a bid for Harry Macklowe’s General Motors Building at 767 Fifth Avenue? read more »
Report: Macklowe Selling GM Building This Month
Bloomberg News is reporting that Harry Macklowe plans to sell the GM Building this month. Bids for the 50-story building, arguably the world's most valuable, are due on Feb. 15. And Mr. Macklowe owes billions to his creditors by Feb. 9 (or they need to give him an extension by that date).
So the timing for a multi-billion-dollar sale of the GM Building at 767 Fifth Avenue would not be more opportune for the embattled Mr. read more »
Silverstein on GM Building: 'It's a Trophy'
Developer Larry Silverstein publicly professed his love for Harry Macklowe’s GM Building today, though was mum on whether he is interested in buying a stake—or all—of Mr. Macklowe’s prized tower at 767 Fifth Avenue.
“I think the General Motors building is perhaps one of New York’s finest buildings—it’s a gem, it’s a trophy,” he told a gaggle of reporters at this morning’s Downtown Alliance breakfast. read more »
Real Estate Super Bowl! Who Will Vie For GM Building?
Not so long ago, Harry Macklowe was sitting pretty, pulling off one of the largest-ever buys of a commercial portfolio, adding it to a trophy case of holdings that included arguably the city’s most desired office property, the General Motors Building at 767 Fifth Avenue. read more »
Billy Macklowe: 'Dad and I Like to Move Quickly'
It's been almost one full week since the news broke that Macklowe Properties was marketing the GM Building at 767 Fifth Avenue, arguably the most valuable building on Earth.
We couldn't help but dig up something that Billy Macklowe said to The Observer's John Koblin back in February, after he and his father Harry bought eight New York buildings (not including the GM) for $7 billion:
'Dad and I like to move quickly. Time kills all deals.'
The GM Building Sale: Our Presidential Race
We're tempted to wax hyperbolic about the potential sale by Harry Macklowe of the GM Building, so, what the heck, we will: It could fetch a truly historic record, perhaps becoming the biggest single biggest building sale of our lifetimes (and the average age of The Observer's real estate desk is 27.5 right now).
Here's the quick math first, then the historical benchmarks. Most top-flight office towers in New York trade now for at least $1,000 a square foot. read more »
It's On! Harry Macklowe Selling GM Building! It Could Fetch Record, Worth '$4 B.-Plus'
Harry Macklowe, the owner of Macklowe Properties who made a mammoth $7 billion property buy earlier this year, has shown his first major sign of buckling in the face of substantial debt troubles, bringing on the real estate firm CB Richard Ellis to market the prized GM Buidling at 767 Fifth Avenue. The news was first reported in The Wall Street Journal online this afternoon.
The GM Building, with its soaring white columns, is easily one of the most valuable buildings in the city. Mr. read more »
The Big Manhattan Spaces for Lease
We reported earlier today on the October rise in Manhattan's office vacancy rate because of big spaces spilled onto the market and up for lease. These included the old New York Times building at 229 West 43rd Street. read more »
They're the Tops! Higher Manhattan Office Floors Pricier Than Ever
Manhattan’s highest office floors cost more than ever now. And you can thank—or blame—hedge funds and their ilk. read more »
