Investment Group In Talks To Buy GM Building

According to WSJ:

An investment group that includes Boston Properties Inc., Goldman Sachs Group Inc. and two Middle Eastern investors are in negotiations to buy the General Motors building along with up to three other properties from New York developer Harry Macklowe for $3.6 billion to $3.9 billion, people familiar with the matter said.

The discussions are serious enough that the consortium, which also includes investors from Kuwait and Qatar, have contacted the lenders on the GM building to discuss assuming the existing debt on the tower and possible modifications to the loan terms, these people said.

If the deal is made, it would be the largest U.S. commercial real-estate transaction of the year and a tentative sign the industry is stabilizing after being pummeled for months by the credit crisis and a weak economy.

The price is lower than Mr. Macklowe and his creditors had hoped. The deal would value the GM building at about $2.8 billion, $200 million less than what had been his minimum price.