The saga of New York’s most iconic triangular skyscraper continues.
After being bought by a surprise claimant, the Flatiron Building’s fortunes have changed once again Up in the air, and there could be more bidding in the near future.
Late last month, the former owners of the Fifth Avenue landmark lost their jobs to deep-pocketed challenger Jacob Garlick, who placed a winning $189.5 million on the former Fuller Building.
Then, after sending the New York City real estate world into a tizzy, Garlick — a managing partner at growth equity venture fund Abraham Trust — found it difficult to pay a $19 million deposit, forcing his foreclosure on the iconic Manhattan building. Captured.
Now, in the latest installment in the drama, three of the former owners have said they will not exercise their ability, as did the most recent deed holders, to purchase the building for just under $190 million.
As told by Jeff Gural, former owner of GFP Real Estate, why Crane’s He was “really hoping to buy it very low.”
after garlic failure to pay With their 10% deposit on the 121-year-old structure the second week (they won it on Wednesday), Gural and his fellow former owners only have until this Monday to decide if they want to own the property once again .
Before the day was over, though, he called it quits — telling Crane yesterday afternoon that neither he nor the other owners would buy the building for the eye-watering bid.
That means it’s back on the block for the 22-story steel-frame structure, at which point Gural and the other former owners will again have the opportunity to buy the building back at a low bid, reports Crane.
Garlick’s Abraham Trust will be on the hook for the auction fee and is still required to pay its 10% down payment, although the rules don’t seem to have meant as much as last week.
While non-industry insiders may not expect such a large amount to be paid after being sued, bankruptcy professionals say the emotional reaction is, to say the least, not surprising.
“I’ve often seen people’s faces change immediately when they actually win an auction,” Greg Corbin of Rosewood Realty Group told Crain’s. “They go from elation and pride to fear and remorse. When Jacob Garlick fell to his knees after the auction, I’m not sure whether it was from joy or from buyer’s remorse in a ‘what did I do’ moment.”