Deutsche Bank skyscraper sale deal falls apart-WSJ
June 23 (Reuters) - A deal to sell a New York City skyscraper formerly controlled by real estate developer Harry Macklowe has collapsed, the Wall Street Journal said, citing a statement released by the brokerage representing the seller, Eastdil Secured.
On June 4, Deutsche Bank AG (DBKGn.DE) agreed to sell the building, Worldwide Plaza, to a group of investors led by RCG Longview and George Comfort & Sons for an undisclosed amount. [ID:nN04246805]
An Eastdil spokeswoman declined to say why the deal fell apart, the paper added.
Worldwide Plaza was the last of seven New York office buildings that Macklowe bought for $7 billion from Equity Office Properties Trust when the U.S. commercial real estate market peaked in early 2007.
To finance his purchase, Macklowe obtained a $5.8 billion bridge loan from Deutsche and a riskier recourse loan from Fortress Investment Group LLC (FIG.N).
Almost a year from the date he purchased the buildings, Macklowe defaulted on the loans and turned over the buildings, which also included 850 Third Avenue, Park Avenue Tower and 1301 Avenue of the Americas, to Deutsche Bank.
According to the paper, the now-defunct agreement involved Deutsche Bank converting its $880 million mortgage on the property into a mix of about $165 million in equity and an undisclosed amount of debt.
Deutsche Bank and representatives from RCG Longview and George Comfort & Sons could not immediately be reached for comment by Reuters. (Reporting by Chakradhar Adusumilli in Bangalore; editing by Simon Jessop)
