by Calculated Risk on 2/11/2008 07:58:00 PM

From the WSJ: Macklowe Receives Default Notice As His Debt Negotiations Stall

New York developer Harry Macklowe was served a notice of default Monday and the possibility of a foreclosure action loomed larger as his negotiations with his lenders over $7 billion of debt on seven Manhattan buildings bogged down ...

This is a story we've been following since last September. It appeared Macklowe bought these buildings right at the top of the commercial real estate cycle using short term financing. As the loans come due, Macklowe has been unable to refinance because the properties are clearly upside down.