by Calculated Risk on 1/31/2008 04:32:00 PM

Remember this story? Macklowes On a Wire

Mr. Macklowe and his son Billy paid $6.8 billion to buy seven New York buildings from Equity Office Properties Trust. ... Macklowe Properties put in only $50 million of equity and borrowed $7.6 billion, according to the documents. (Mr. Macklowe borrowed more than the purchase price to cover closing costs and other fees.) The deal also had "negative debt service," meaning that the rents from the buildings weren't expected to cover the debt payments for five years ...Macklowe Properties financed nearly $5.1 billion in debt that must be paid back by February...

Well, the debt apparently isn't being paid off. Instead, from the WSJ: Macklowe in Deal to Cede Control Of Seven Manhattan Properties

Troubled New York real estate titan Harry Macklowe has reached a tentative agreement with his lender to turn over effective control of seven Manhattan office buildings he triumphantly acquired less than a year ago for $7.2 billion ...

Talk about walking away.