Macklowe - The Otera Catalyst

Macklowe is making a last ditch effort to save 1330 Ave of the Americas, which he effectively lost to Otera last month in the foreclosure auction. The play is to bring an equity partner and avoid the $12 mm in transfer tax costs. Macklowe and JV would pay Otera ~50% of their investment, the other mezz holders are already gone, and the taxpayer doesn't get the transfer tax (which seems grossly unfair, but that's another story). It's interesting how the foreclosure could actually end up benefiting Macklowe, even if he ends up a bit diluted given how much he put aside for renovations and whatnot.

Macklow has problems all over. He obviously overpaid for the EOP properties and lost GM and a number of other properties in that debacle, but he also has tenants fleeing (including 1330 AoA which has a 66.1% occupancy), and plummeting lease rates.

510 Madison was damaged by fire in February, and now two major tenants that were coming into the still-under-the-shovel building are trying to break their lease and recoup deposits. Tourneu had initially agreed to lease the ground floor retail space (3300 sq. ft.) and Jay Goldman & Co. had plans to lease the 19th floor of the 30 floor building.