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Harry Macklowe, the New York City developer who is famous for his Houdini type escapes from impending doom, has sold the GM Building and 3 others to a group led by Mort Zuckerman. Macklowe was on the verge of bankruptcy when the shrinking credit market made it impossible for him to refinance some debt.

As the company saving transaction went down the word on the street is that Harry’s son, William, is taking over the company. The son, less prone to entrepreneurial risk, is expected to transition the company from it’s present bet big volatile entity to a more traditional real estate empire.

While this is probably good for the company it is a shame for those of us who have grown up following the exploits of Harry Macklowe. He was a true capitalist’s capitalist.

Now it appears Macklowe will be undone by an unexpected adversary: his son, William. On Tuesday, a spokesman for Macklowe Properties confirmed that William is expected to replace Harry as the privately-held company’s chairman.

Ironically, Harry is on the verge of relinquishing his title after pulling off another of his Houdini-like escapes. He sold, for $3.9 billion, his company’s treasured GM Building and three other Manhattan trophies on Saturday to an investor group led by Mort Zuckerman’s Boston Properties. The Macklowes needed the money badly. Macklowe Properties defaulted several months ago on a $1.2 billion bridge loan that the developer personally guaranteed to buy seven Manhattan skyscrapers last year for $6.8 billion.

The default, however, created tensions between Harry and William, his right-hand man. In many ways, this was a typical father-son business dispute. Harry is a classic first generation entrepreneur who built Macklowe Properties from nothing, taking enormous risks with other people’s money.  via CNN and Money Magazine

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