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Harry Macklowe the Mogul

What I took out of this article, a strategy that even non mogul type real estate investors can think about applying, is the store within your building that attracts tenants and makes money. Here, Macklowe, a real estate investor that may have bitten off more than he can chew in buying a number of highly leveraged properties in the New York area, one being the General Motors Building for the then-record price of $1.4 billion.

But he brokered a deal to put an Apple store in the basement of the building and also takes a cut of the earnings from the store. Sure, you’re not going to have an Apple store in your building but you might have another key tenant, whether that’s a coffee shop, a small gym, a health spa, or even say a pharmacy. Some type of store or tenant that offers convenience to those living in the building and is willing to setup a long term lease.

He’s used to being in over his head so to speak in terms of borrowing and delaying the paying of the loans as he tries to gather more funds. Now however, with the credit crunch and market crash, he may lose his famed building and his boat. He even tried to gather funds over the Middle East but was turned away.

Then there's Sam Zell, who sold his properties just before the real estate market turned sour and the sub prime mortgage crisis hit the fan.

In hindsight, Zell's timing was flawless. He sold several months before the subprime crisis unfolded. Blackstone was similarly lucky. Macklowe was less fortunate. In August, Wall Street abruptly turned off the credit spigot. "There was a game of musical chairs," says Ben Lambert, chairman of Eastdil Secured, which sold Macklowe the buildings for Blackstone (BX). "The music stopped, and there was no chair for Harry.

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