New York’s Flatiron landmark is up for an auction for the second time. Overall, the first auction occurred last month. But, the sale did not go through. The winning buyer, Jacob Garlick, failed to pay a $19 million deposit for the building. This is 10% of the full price, which was $190 million. Other potential buyers also declined the offer for buying it. That’s why there is a great possibility for the auction happening again.
Why New York’s Flatiron Skyscraper Auction Failed?
Interest in buying the Flatiron building was high, and the scene was competitive. The auction took place in March on the steps of the Manhattan County Courthouse. The interest in purchasing this landmark of the city that never sleeps was highest among three parties. Those are ABS Real Estate Partners, GFP Real Estate, and Sorgente Group. But after a long bidding war, Jacob Garlick won the building at auction.
Although the expectation was that a group of majority owners would get the building, it still went to the previously mentioned capitalist. Also, many consider him to be a venture capitalist, as Artnet reports. In the end, the fact that he failed to pay the deposit is a way to support these claims. Chairman of GFP and well-known personality in the New York real estate industry, Jeffrey Gural was a lead role in the auction.
Gural acquired the building for $190 million. He also needed to pay a $19 million deposit, but he failed to do so. In this way, the majority owners got the opportunity to buy the building for $189.5 million. This offer was the second highest bid. In the end, they rejected this offer. Gural told the outlet that he “really hoped to buy it for a lot less”.
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Who Was the Flatiron’s Architect?
Due to the above stated reasons, the auction will occur again. What remains unclear is the time of the auction. A second auction could take place in two months at the earliest, according to the auctioneer who coordinated the first sale. His name is Matthew Mannion. In order to not have the same problem this time, there is a chance that the condition for buying the building will be an automatic deposit.
Although Garlick refused to pay the deposit, there is a chance that he will participate in the auction again. His intention is to get the landmark this time at a lower price. But, there is a small this could happen. The reason is that he still has to pay the previously mentioned $19 million deposit from the first auction.
Whoever wins The Flatiron will add a genuinely famous building their resume. The Daniel Burnham-designed structure was finished in 1902 and has since come to symbolize New York. Famous pieces by Berenice Abbott, Alfred Stieglitz, and Edward Hopper, among others, feature The Flatiron.