Worldwide Plaza Goes Back on the Block

NEW YORK CITY-A previously announced deal to sell Worldwide Plaza to an investment group led by RCG Longview and George Comfort & Sons, has collapsed, with Deutsche Bank reportedly setting July 15 as the deadline for new bids. The bank took back the 47-story office tower at 825 Eighth Ave. and six other assets from Macklowe Properties last year after the developer defaulted on $5.8 billion in debt.

According to the Wall Street Journal, Deutsche Bank’s management was uncomfortable with the selling price, reportedly in the mid-$300s per square foot. Citing unnamed sources, Bloomberg News reports that the bank will change the terms of the transaction with the new buyer, continuing to finance the sale but no longer retaining an equity stake in the 1.6-million-square-foot property at West 49th Street and Eighth Avenue. Calls by GlobeSt.com to Deutsche Bank were not returned by deadline.

In a statement, George Comfort president Peter Duncan says his company and RCG are “ready, willing, able and eager” to close the deal, which was brokered by Eastdil Secured, and is “disappointed” that the bank opted not to honor the contract. “We have an executed sales contract, a significant hard deposit in place and even a closing date of June 30 from the seller’s attorneys,” says Duncan. “We are ready to close.” He adds that he remains hopeful that Deutsche Bank will still proceed with the closing as scheduled.

Worldwide Plaza, which is reportedly as much as 50% vacant, is the last unsold asset in the Equity Office portfolio that Macklowe acquired from Blackstone Group in 2007 for $7 billion. It counts law firm Cravath, Swaine & Moore and advertising agency Ogilvy & Mather among its largest tenants. However, Ogilvy will be relocating its headquarters to 636 Eleventh Ave. in a deal for more than 550,000 square feet of space that was signed last year.