Macklowe Son Expected to Succeed Father

According to a news report by the Wall Street Journal, the father-son team will dissipate as William Macklowe is expected to succeed his father as chairman. Harry Macklowe will step down as chairman at the behest of his son.

They were able to avoid the collapse by selling the GM Building and three other properties to a group led by Boston Properties and Goldman Sachs for $1.5 billion, plus the assumption of $2.5 billion in debt. The family in turn, gave up $1.4 billion in cash it made off the GM Building and other properties to keep creditors away.

The move comes after months of friction between the father and son. William blames his father for mishandling the family company’s $7 billion purchase of seven Manhattan office buildings from Blackstone Group. Harry Macklowe personally guaranteed a $1.2 billion loan from Fortress Investment Group.

William Macklowe said, "The issue was my father seeing the victory of the deal as closing of the transaction. I saw victory as exiting the transaction.” The elder Macklowe resisted his son’s efforts to expedite reducing their risk. The selling of the GM building gave Macklowe Properties $1.4 billion in cash along with other properties to keep creditors at bay.