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Ex-Harry Macklowe Tower “Worldwide Plaza” sold to RCG Longview and George Comfort & Sons: Deutsche Bank

By Amarendra Bhushan for CEOWORLD Magazine Updated:June 5, 2009

Deutsche Bank has found a buyer for another piece of Harry Macklowe’s returned portfolio. RCG Longview and George Comfort & Sons are buying most of the property.

Worldwide Plaza, the 8th Avenue headquarters of law firm Cravath, Swaine & Moore, is being sold to a group of investors led by RCG Longview and George Comfort & Sons, who is buying it from Deutsche Bank AG.

The investment group has reportedly agreed to inject an undisclosed amount of fresh capital into the building.

As part of the deal, the group will put up $175 million in equity on top of what will be an approximately $450 million mortgage.

The law firm Cravath, Swaine & Moore LLP is the building’s largest tenant and is on a long-term lease. About 600,000 square feet of the building is reportedly being vacated by Ogilvy & Mather Worldwide, the advertising and public relations firm owned by WPP Group Plc (WPPGY), which is moving to another building.

Worldwide Plaza, the last of seven New York office buildings that Harry Macklowe bought for $7 billion from Equity Office Properties Trust when the U.S. commercial real estate market peaked in early 2007.

Macklowe’s purchase of the seven buildings was done concurrently with the Blackstone Group’s $39 billion acquisition of Equity Office Properties Trust.

To finance his purchase, Macklowe obtained a $5.8 billion bridge loan from Deutsche and a riskier recourse loan from Fortress Investment Group LLC.

Harry 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.

Macklowe forced to sell the General Motors Building, one of the most prized in the city, to repay Fortress.

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