Saturday, Feb 16, 2008
The world's biggest subprime borrower
CalculatedRisk: CRE: More on Macklowe
This is a story we've been following because it appears Macklowe bought at the top, and he has a large bill coming due next month for a highly leveraged transaction:
[Macklowe] has a $6.4 billion debt payment coming due next month in connection with his purchase of seven ... Midtown Manhattan office buildings a year ago. When he bought those buildings from Equity Office Properties, he ... used only $50 million of his own money to do so; he borrowed $7 billion to finance the rest of the purchase.
According to the WSJ, Macklowe paid $6.8 billion for these seven properties, and borrowed a total of $7.6 billion! The NY Times also mentions a couple of other deals in possible trouble:
Posted by lvmreader @ 08:16 PM (232 views) Add Comment
1 Comment
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1. mark wadsworth said...
Priceless, if you click all the way back to the original article, one of these jokers is quoted as saying "In hindsight, everybody should have been a bit more cautious"