Developer Harry Macklowe?he of the GM Building and $60M Plaza apartment fame?owes a lot of money to a lot of people. So much money, in fact, that over the weekend the Times filed a gigantoid story that broke down Macklowe's debts. He'll come back strong (he has a habit of doing that), but the story contained some very intriguing updates on two Macklowe hot properties: the new office building at 510 Madison Avenue (complete with swimming pool!) and the controversial demolition of the Drake Hotel on Park Avenue, and its redevelopment as a "short, fat box" complete with New York City's first Nordstrom's. Good lord, talk about craziness.
1) The Drake: The Macklowes (Harry and son) are in default on a $510 million loan connected with the site. They are looking for equity partners, and negotiations have been ongoing with Stephen Ross at Related about either a purchase of the Drake site or a partnership. Nordstrom's signed a non-binding agreement, so they may high-tail it to some other location while all this gets sorted out.
2) 510 Madison Avenue: The Macklowes are trying to obtain a new construction loan for the 30-story office building, which simply must happen. Who cares if it's a sound investment or not? Hedge funds! Secretaries! Swimming pool! Coke-fueled debauchery! Uh, strong Wi-Fi signals to steal!
· Harry Macklowe’s $6.4 Billion Bill [NYT]
· Macklowe's Drake Replacement Revealed, To Much Chagrin [Curbed]
· Ridiculous Amenity Alert: 510 Madison Gets Wet [Curbed]