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Up Front: PROPERTY CASUALTIES
ANOTHER DEVELOPER IS RUN TO GROUND
New York developer Harry Macklowe has been accused of missing debt payments, and lenders are livid. And you figured the big-time real estate pratfalls, la the Reichmanns, were over.
Macklowe in 1992 had to restructure $13 million in loans. Not good enough. His lenders allege he missed $688,000 in interest payments last year and sued him on Nov. 8 to recover the principal and interest. One creditor, Bank Leumi Trust, says the suit was recently settled but won't disclose terms. Usually, developers settle by giving up some equity in their properties. And Macklowe's empire is shrinking in another way: After losing his largest tenant at a Ninth Avenue office building, brokers say, he sold it for an estimated $30 million.
That's not all: Bank sources say he's missed payments on the $100 million-plus mortgage for his namesake Hotel Macklowe, off Times Square. Macklowe did not respond to calls and his lawyer declined comment.EDITED BY LARRY LIGHT AND JULIE TILSNER Suzanne Woolley