Why Harry Macklowe may no longer be a real estate “billionaire”

on Nov 5, 2019
  • The once real estate billionaire Harry Macklowe may be a little far from making it back to the Forbes billionaire list
  • Macklowe underwent a divorce that swept away half of his fortune
  • After the divorce, his biggest real estate investment is said to be 432 Park Avenue residential skyscraper

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

There’s no doubt that Harry Macklowe is a big name in the US real estate sector. Back in 2007, the developer owned some of the United States’ most iconic properties including one of Steve Jobs-designed Apple stores and a GM Building in Central Park. During the same year, Macklowe had just sealed a $7-billion deal that saw him acquire seven skyscrapers at the heart of New York City. But what the public did not know is that he also had debt as big as Elon Musk’s dreams.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

The 2008 financial crisis didn’t make things any easier for Macklowe, pushing him to sell off most of his prime holdings to clear off his debts. By the time the economy was recovering, the once Forbes-listed billionaire fell off the magazine’s coveted top 400. Forbes had placed his net worth at $2 billion in 2007.

But it seems fate is not yet done with Macklowe – not long ago, he was back again in the limelight, this time around in the corridors of justice battling a bitter divorce. At the time, there were whispers that the real estate investor might be back to being a billionaire after he was spotted living like the 1 percent. The paparazzi couldn’t help but notice his $72 million Manhattan apartment and a $23.5 million yacht, not to forget his billion-dollar collection of art.

But the documents filed in court painted a different picture of the tycoon. It’s true, Macklowe is very rich – just not a billionaire rich.

According to court findings, the real estate developer and his now ex-wife, Linda, had a personal real estate worth $100 million, cash and investment accounts worth $90 million, interests in commercial property worth $83 million and other assets totaling to about $17 million. Other properties include the $15 million 432 Park Avenue skyscraper and an art collection valued between $575 million and $740 million. So, in all, the couple could have been worth between $900 million and $1.1 billion, before the divorce.

If that figure is split into two, Macklowe could be worth about half a billion dollars today; not bad at all, but not good enough for the Forbes’ billionaire list.

However, sources say the millionaire isn’t sweating it at all. He recently put up a 42-foot tall portrait of him and his new wife on the facade of 432 Park Avenue, where he’s been keeping his financial interest since the divorce.

Real Estate Real Estate Funds