http://www.businessweek.com/news/201...cim-group.html
Macklowe Sells Drake Hotel Site on Park Avenue to CIM Group
January 28, 2010
By David M. Levitt
(Bloomberg) -- New York developer Harry Macklowe sold a prime Park Avenue development site to an affiliate of CIM Group for $305.4 million, city records show.
Once home to the Drake Hotel, the parcel at Park and East 56th Street in Manhattan lies in one of the world’s 25 most expensive office districts and about two blocks from the world’s priciest shops. Macklowe sold the Drake site along with four adjacent properties that could provide access to frontage on East 57th Street, near stores including Chanel Inc., Hermes and Louis Vuitton. He bought the Drake in 2006 and demolished it.
In 2008, Macklowe defaulted on a $513 million loan tied to the property, according to a lawsuit filed on behalf of lenders including Deutsche Bank AG. He recently planned to buy out creditors as part of a partnership with Los Angeles-based CIM, a person familiar with the situation said on Jan. 5.
Macklowe declined to comment on the sale to CIM, said Steve Solomon, his spokesman, leaving unanswered the question of whether Macklowe retains an interest in the property.
CIM had no immediate comment, said Bill Mendel, a spokesman for the company.
Macklowe intended to build a high-rise tower on the site that could have contained retail, condominium apartments and a new hotel, according to court papers.
The property sale was reported earlier today by TheRealDeal.com.