Flatiron Building sold at auction for $190 million

One of New York's most famous and beloved buildings, the Flatiron Building, went up for auction this week for $190 million. Time-out.

The auction lasted 45 minutes and attracted real estate heavyweights who, rising higher and higher, overcame the original $50 million bid until Jacob Garlick offered $190 million.

“It has been my lifelong dream since I was 14 years old. Since then, I've been working hard every day to get here,” Garlick said. “I am honored to be the steward of this historic building, and it will be my mission in life to preserve its integrity forever.”

Garlick is a founding partner of the Abraham Trust, a venture capital growth fund.

According to the Commercial Observer, he must pay 10% of the total price by the end of the day on March 24, otherwise the building will go to the second highest bidder. If this person also refuses, the building will again be put up for auction.

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It's unclear what Garlick's plans for the Flatiron Building are, as he declined to comment.

Originally called the Fuller Building, the 22-story tower on Fifth Avenue has become a landmark for the Flatiron in Manhattan. As New Yorkers are well aware, this name is inspired by the triangular iron shape of the building.

Originally, when the building opened in 1902, this address was the headquarters of the construction firm, the Fuller Company. In 1925, the company sold the building to an investment syndicate.

In 1966 it was recognized as a landmark.

Fast forward to the late 1990s when ownership was divided between partners and the building was eventually renovated.

The last tenant of the Flatiron Building was Macmillan, the British publishing giant. By June 2019, the entire building (the entire 21st floor reserved for offices) was vacant. As of November 2020, the entire building was vacant and renovation work had begun.

Prior to the sale, 75% of the property was owned by GFP Real Estate, Newmark, Sorgente Group and ABS Real Estate Partners. According to The Real Deal, Nathan Silverstein owned the remaining 25% of the property.

In 2021, a former group of partners sued Silverstein to secure the sale of part of it, citing poor business decisions by the latter that they allege left the building vacant for a long time.

Silverstein, for its part, sued the other partners on similar grounds, saying they did not attempt to properly rent the space.

A recent ruling by the state Supreme Court said the building should be up for auction on March 22.

Given the ownership structure, either partner effectively has a veto over ownership, further complicating the situation - hence the court's decision to put the building up for auction. The proceeds from the sale will be divided among the partners depending on their parts of ownership.