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Zuckerman: $4B GM Building Deal Closes

NEW YORK CITY-Ownership of 767 Fifth Ave. changes hands as Boston Properties closes on the first phase of its $4-billion deal with Macklowe Properties.

By Paul Bubny | Updated on June 09, 2008

NEW YORK CITY-Two weeks after acquiring the General Motors building and three other Macklowe Properties office towers, Boston Properties has apparently completed the first phase of closing on the nearly $4-billion deal. A company spokeswoman could not confirm what Mortimer Zuckerman, chairman of the board and director of the Boston-based REIT, said at a Real Estate Board of New York presentation Monday afternoon: “the General Motors building is being transferred from its current owners to Boston Properties as we sit here.” Zuckerman’s assertion drew applause from the REBNY audience at the Sheraton New York here.

As reported last month by GlobeSt.com, Boston Properties entered into an agreement to acquire the two-million-sf 767 Fifth Ave. and three other Midtown assets for $3.95 billion. The purchase price includes $1.47 billion in cash, $10 million in stock and the assumption of about $2.5 billion in debt.

On the GM building itself, the firm is assuming $1.9 billion of secured and mezzanine loans. Boston Properties is also buying the 292,000-sf 540 Madison Ave. building at Madison Avenue and 55th Street, a 591,000-sf office building at 125 W. 55th St. and the 664,000-sf Two Grand Central Tower at 44th Street between Lexington and Third avenues. Those deals are also being financed with a combination of secured and mezzanine loans and are expected to close later.

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