* Deutsche Bank to sell New York skyscraper

* Price not disclosed
(Recasts first sentence, adds details of building)

By Ilaina Jonas

NEW YORK, June 4 (Reuters) - Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research) has
agreed to sell a skyscraper that will bring an end to real
estate developer Harry Macklowe's disastrous bet on the New York
office market, a source familiar with the deal said on
Thursday.

Worldwide Plaza, the last of seven New York office buildings
that Macklowe bought for $7 million from Equity Office
Properties Trust when the U.S. commercial real estate market
peaked in early 2007, is being sold to a group of investors led
by RCG Longview and George Comfort & Sons, the source said.

Representatives from RCG Longview and George Comfort & Sons
could not immediately be reached for comment.

Macklowe's purchase of the seven buildings was done
concurrently with the Blackstone Group's $39 billion acquisition
of Equity Office Properties Trust. The sale of the company by
chairman and founder Sam Zell was seen as the height of the U.S.
commercial real estate market that has quickly collapsed because
of the lack of debt financing available for new loans.

To finance his purchase, Macklowe obtained a $5.8 billion
bridge loan from Deutsche and a riskier recourse loan from
Fortress Investment Group LLC (FIG.N: Quote, Profile, Research). But within a year, the
credit markets began to dry up and Macklowe could not secure
permanent financing to repay the bridge loans.

Almost a year from the date he purchased the buildings,
Macklowe defaulted on the loans and turned over the buildings,
which also included 850 Third Avenue, Park Avenue Tower and 1301
Avenue of the Americas, to Deutsche Bank.

The failed deal also forced Macklowe to sell the General
Motors Building, one of the most prized in the city, to repay
Fortress. Macklowe bought the GM building in 2004 for a
then-record $1.4 billion and sold it for $2.8 billion to Boston
Properties (BXP.N: Quote, Profile, Research), whose chairman is publisher Mort Zuckerman.

A price for the 50-story, 1.5 million square foot building
on Eighth Avenue and 49th Street was not disclosed. The
building, whose tenants include law firm Cravath, Swaine &
Moore, is about half empty.

When Macklowe purchased the building, the mortgage was more
than $800 million. But since then, experts have estimated that
values may have fallen by 30 percent. The lack of sales has made
valuing buildings a fuzzy art.
(Reporting by Ilaina Jonas; Editing by Andre Grenon and Matthew
Lewis)