New York City’s famed Flatiron Building — one of Manhattan’s first skyscrapers — could go back on the market after a man who successfully bid $189.5 million for the landmark failed to make the first 10 percent down payment. paid.
The building was sold on March 22 by order of the New York State Supreme Court.
The five owners – four real estate companies and one individual, Nathan Silverstein – had fallen out over the renovation of the building, which had been vacant since the last tenant, Macmillan Publishing, moved out in 2019. They filed competing lawsuits in 2021. and as a result the sale was ordered.
The face-to-face auction was held and an obscure 31-year-old Virginia real estate developer, Jacob Garlick, a managing partner at Abraham Trust, made the highest bid.
The Flatiron Building went up for auction on March 22, but is now likely to be re-sold after the winning bidder failed to come up with the money
Jacob Garlick (pictured with the number two sign), won ownership of New York City’s iconic Flatiron Building with a $190 million bid, but failed to make the initial $19 million down payment
Garlick celebrated his winning bid on March 22. However, his joy was short-lived
In an unusual move, the auction did not require a deposit to be made up front.
Some speculated that the sellers couldn’t imagine anyone wanting to buy the 1902 building, which is losing thousands of dollars a month and requires an estimated $100 million in investment to make it usable.
In an interview with NY1Garlick said he fulfilled a childhood dream with the nine-figure purchase.
“It’s been my lifelong dream of mine since I was 14 years old. I’ve worked every day of my life to be in this position,” Garlick said.
“We are honored to be stewards of this historic building, and it will be our mission in life to preserve its integrity forever.”
Garlick was required to pay the 10 percent down payment two days after the sale, but failed to do so. He has now officially declared that he is no longer interested in the purchase.
“I’ve often seen people’s faces change in the blink of an eye when they actually win the auction,” says Greg Corbin of Rosewood Realty Group.
He told Crain’s, “They go from a look of excitement and pride to one of fear and regret.
“When Jacob Garlick fell to his knees after the auction, I’m not sure if it was joy or buyer’s remorse in a ‘what did I do’ moment.”
Auctioneer Matthew D. Mannion (pictured right) addresses bidders during the ‘Flatiron Building’ auction. Jacob Garlick holds panel number two; Jeffrey Gural is standing to his right, wearing a beige sweater
Jeffrey Gural (pictured) is president of GFP Real Estate, which owns a stake in the historic building
The building has now been offered to the current deed holders – the four companies and Silverstein – but the CEO of one of the companies, Jeff Gural, said they would not pay the nearly $190 million cost.
The building is now likely to be sold again at auction.
Gural, who had a 75 percent stake in the building and was allowed to use it as equity, is likely to make a lower bid.
Garlick will still be liable for auction fees and may be forced to pay the 10 percent deposit, but the Real Deal website said this was deemed unlikely.
The March 22 bidding started at $50 million, and Gural, a veteran developer, said he was shocked by Garlick’s offer.
“I was a little shocked, to tell you the truth,” Gural said.
“I never thought anyone would bid so much on the building.
“It’s a beautiful building, but it needs $100 million in upgrades. It’s almost empty.’
Traffic moves along 5th Avenue past the Flatiron Building as seen from the 86th floor observation deck of the Empire State Building on Feb. 18
The iconic Flatiron Building in New York City has been protected by scaffolding for several years
The Flatiron’s interior hasn’t matched its spectacular exterior in recent years.
The water-powered elevators were famously slow and leaky, often taking several minutes to ascend from the lobby to the top offices.
The 121-year-old landmark building has been empty since Macmillan Publishers, which occupied all 21 floors, moved in 2019.
The building was originally designed as an office for the George A. Fuller Company, a major Chicago construction company.
The responsible architect chose the distinctive triangular shape to maximize the footprint on the narrow piece of land on which it stands.
Its odd triangular shape was a source of fascination – and horror, at first, with people worried it might topple over.
It eventually became one of the most popular in the city and was declared a city landmark in 1966.