The new owners of New York’s famous Flatiron Building may not actually be able to afford their purchase.
The building’s buyer, Jacob Garlick, won the Fifth Avenue landmark last week, but is already behind on payments.
New York real estate circles are upset with the industry outsider who barged in and scooped up the Flatiron Building for $190 million It just missed paying a required $19 million by the close of business Friday — last Wednesday, The Real Deal first reported,
The terms of the sale of the 121-year-old structure require that Garlick, managing partner of growth equity venture fund Abraham Trust, acquire 10% of his winning bid before the weekend.
Multiple sources close to the deal, however, told the publication that he failed to do so, putting his hold on the iconic Manhattan building into question.
When reached for comment, Garlick told The Real Deal that he can’t talk about either the deposit or the deal this week, but he will be able to by next week.
The Flatiron’s possibly extremely fleeting owner may be able to get a little extra time with the historic structure, thanks to a court-appointed referee, the outlet noted — but if he can’t secure an extension, the auction’s second-highest price could be . Highest bidder will be allowed. To buy the namesake of the neighborhood at the price of their last bid.
The second-highest bidder, former partial owner of GFP Real Estate, Jeffrey Gural, told the outlet that, even given the opportunity, he is not interested in paying $189.5 million for the former Fuller Building Is.
So, then, if Garlick can’t pay up and Gurl goes through with the buyout, it’s back on the auction block for Flatiron.
New payment failure update is only the latest in the skyscraper’s ongoing legal saga: The reason came be on the auction block That’s because in the first place there was a very costly standoff between Gural and his fellow former co-owners over what to do with this expensive property.