Macklowe pays $1.4B for GM building, highest ever paid in North America

Real Estate Weekly, Sept 3, 2003 by Elaine Misonzhnik

After a bankruptcy and a battle in court, Conseco has sold the General Motors building to Macklowe Properties for $1.4 billion, a price that sets the record for the highest ever paid for an office building in North America.

Macklowe Properties has agreed to pay Conseco approximately $700 per square foot for the 50-story property, located at 767 Fifth Ave.

The building is considered one of the most desirable in the city, boasting a Midtown location and a prestigious tenant list, including such firms as the GM Corp., Bank of America, and Estee Lauder.

Noted architects Edward Durell Stone and Emery Roth & Sons were responsible for the building's 1964 design.

Conseco, an insurance firm, has decided to sell the property as a way to recover after a recent bankruptcy. It shares the ownership of the building with Donald Trump.

"It is a superb, world class asset in a world class location. It is a terrific long-term investment for us," said William Macklowe, president of Macklowe Properties. Officials from Macklowe Properties also commented through an official statement.

"A subsidiary of Conseco Inc. has entered into a contract with Macklowe Properties for the sale of the General Motors building with the closing to occur shortly," said the statement. "In accordance with the terms of the confidentiality agreements between the parties, terms of the transaction are not disclosed."

Trump, who tried to buy Conseco's 50% share of the property for $295 million two years ago, sued the company for allegedly trying to back out of the deal.

However, his suit was denied and he has since agreed to the Macklowe sale.

"We are very happy about the deal," Trump said. "The price is wonderful and so is the asset. It's a great building, in great condition, we spent a lot of time and effort on bringing into shape and it's in a wonderful location."

Wayne Maggin, of Eastdil Realty, served as the broker in the transaction.