Manhattan Buildings soldSL Green recently purchased the construction loan on Harry Macklowe's 510 Madison Avenue, a major step toward taking control of the new 350,000-square-foot office tower. The $185 million in outstanding debt was purchased from Union Labor Life Insurance for $170 million. Now, SL Green will have to fund $30 million in unfinished work, plus foot a $30 to $40 million bill for a reserve for tenant improvement allowances and brokers' commissions. The building's only tenants so far are investment firm Jay Goldman and watch retailer Tourneau, both of which are embroiled in battles to renege on their contracts.
Union Square hotel LEM Mezzanine, a Philadelphia-based private equity fund, acquired Istithmar's former W New York - Union Square hotel for $2 million, plus the assumption of $212 million in debt, in a foreclosure auction held in Manhattan, marking the first major asset to be sold since the November debt crisis emerged in Dubai. The hotel would continue to operate under the W brand, while LEM would make an undisclosed amount of capital improvements and position the hotel for an eventual recovery of the New York economy.