[NYguy]

https://therealdeal.com/national/202...town-projects/

Harry Macklowe faces major losses on Miami, Midtown projects
Fortress pursuing foreclosures on Macklowe’s developments


APR 16, 2024
By Keith Larsen

Fortress Investment Group initiated foreclosures tied to two of Macklowe’s properties: a site near the Dadeland Mall in Miami and Midtown rental where Macklowe once planned a supertall office tower.

Fortress is seeking to foreclose on Macklowe’s equity interests in 5 East 51st Street in Midtown Manhattan and 8609 Southwest 72nd Avenue in Miami. A U.C.C. foreclosure avoids the judicial process and allows a lender to take over a company that indirectly owns property. Often, these foreclosures are halted by a bankruptcy filing.

Macklowe took on $191 million in loans from Fortress in 2019 for three Midtown properties, including a six-story rental building at 5 East 51st. The properties were part of assemblage where Macklowe tried to build a super-tall office tower known as “Tower Fifth.” The project would rise 1,500 feet, span 1 million square feet and cost upwards of $1 billion. But those dreams appear to be over. Macklowe failed to close on the purchase of another piece of the assemblage at 14 East 52nd Street last year.

Macklowe, in his late 80s, is a titan of New York real estate. But lately he’s faced some troubles throughout his company and personal portfolio. CIM Group initiated a foreclosure on his personal units at 432 Park Avenue, but he stopped the foreclosure by putting the company that controls the properties into bankruptcy. He is listing his Hamptons estate for $38 million.

Fortress, an investment firm with $48 billion in assets, is among the more active buyers of distressed real estate. It has taken over as the lead developer 125 Greenwich, a stalled 71-story condo building in Lower Manhattan.

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