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Update: The winner of the auction, Jacob Garlick did not pay the required deposit on time to close the sale, according to The Real Deal. If he isn’t offered an extension from the court, the building will likely go back on the auction block.
One of NYC’s most famous and beloved buildings, the Flatiron Building, was put up for auction this week and sold for a cool $190 million!
According to NY1, the auction at the state Supreme Court in Lower Manhattan lasted 45 minutes and attracted real estate “heavyweights” who pushed past the original opening bid of $50 million, going higher and higher until Jacob Garlick bid $190 million.
“It’s been my lifelong dream of mine since I’m 14 years old. I’ve worked every day of my life to be in this position,” Garlick told NY1. “We are honored to be a steward of this historic building, and it will be our life’s mission to preserve its integrity forever.”
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Garlick is the founding partner of Abraham Trust, a growth equity venture fund.
According to Commercial Observer, he owes 10% of the total price by the end of the day Friday, or it will go to the second-highest bidder. If that person declines, the building would go back up for auction.
It wasn’t clear what Garlick’s plans are for the Flatiron Building as he declined to comment on that.
Originally dubbed the Fuller Building, the 22-story tower at 175 Fifth Avenue has come to define the Flatiron District in Manhattan that it calls home. As New Yorkers are well aware, the moniker is inspired by the structure’s triangular, iron-like shape.
Originally, when it opened back in 1902, the address functioned as the headquarters of the construction firm Fuller Company. In 1925, the company sold the building to an investment syndicate.
It was designated a landmark in 1966.
Fast-forward to the late 1990s, when the ownership was divided among partners and the building eventually went under renovation.
The last tenant to call the Flatiron Building home was Macmillan, the British publishing giant, but all 21 office floors were vacant by June of 2019. As of November of 2020, the entire structure was left empty and renovations began.
Before it sold, 75% of the landmark was owned by GFP Real Estate, Newmark, Sorgente Croup and ABS Real Estate Partners. Nathan Silverstein owned the remaining 25% of the property, according to The Real Deal.
In 2021, the former group of partners sued Silverstein to secure a partition sale, citing the latter’s poor business decisions that, they claim, have kept the building vacant for a long time, according to the site.
Silverstein, for his part, sued the other partners on similar grounds, suggesting they did not try and get the space leased out properly, the Real Deal says.
A recent judgment by the State Supreme Court said that it would need to go up for auction on March 22.
Given the structure of ownership, any partner basically has veto power over the faith of the property, rendering the entire situation even more complicated—hence the court’s decision to put the building up for auction. According to The Real Deal, the proceeds of the sale will be split among the partners based on their current stakes.
Hopefully, Garlick and the Abraham Trust will honor our precious skyscraper with needed renovations and new tenants.