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Sixth Avenue Tower Up for Auction

NEW YORK CITY-An auction has been scheduled for Wednesday on Macklowe Properties' 1330 Ave. of the Americas, after a mezzanine loan went into default.

By Paul Bubny | Updated on April 22, 2009

NEW YORK CITY-Macklowe Properties’ 40-story office tower at 1330 Ave. of the Americas is to be seized by a creditor and put on the auction block Wednesday, according to published reports. A spokesman for Macklowe declines to comment.

Bloomberg reported that the 461,000-square-foot office property, which Mascklowe bought in December 2006 for $498 million, is being auctioned by Eastdil Secured on Wednesday. The action stems from a default on a $130-million mezzanine loan held by Cadim, a unit of a Canadian-government-owned pension fund, Caisse de Depot et placement du Quebec, published reports say. Macklowe also obtained a $240-million senior mortgage from Deutsche Bank for the property.

Dan Fasulo, managing director at Real Capital Analytics, tells GlobeSt.com the fate of 1330 Sixth Ave. will hardly be an isolated incident. “There will be many more like this,” he warns, noting that the Sixth Avenue property represents “the same situation as [the] Hancock Tower in Boston.” Fasulo was referring to the March 31 sale of Broadway Partners’ John Hancock Tower to Normandy Real Estate Partners and Five Mile Capital Partners. Ironically, Broadway’s $3.3-billion acquisition of the Hancock Tower and nine other office properties closed on the same day as Macklowe’s acquisition of 1330 Sixth.

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