One of the most historic and recognizable skyscrapers in all of New York City is being auctioned off later this month.
The Flatiron Building, located at 175 Fifth Avenue, will go under the hammer to put an end to an ongoing dispute between its five owners, PinusCo first reported. GFP Real Estate, Newmark, Sorgente Croup and ABS Real Estate Partners currently own 75 percent of the vacant property while the other 25 percent belongs to attorney Nathan Silverstein. In July 2021, the four entities sued Silverstein and asked the courts to force the sale of the entire building after decisions regarding its fate reached an impasse.
The stalemate began after longtime tenant Macmillan Publishers announced it would be moving its offices downtown in 2019 after previously occupying all 21 floors of the Flatiron Building. According to Jeffrey Gural of GFP Real Estate, Silverstein wanted to bring in a new tenant before making necessary upgrades to the 120-year-old tower—some of which were required for safety reasons. The lawyer also suggested dividing the building into five separate properties, though the plan would be impossible to carry out due to its landmark status.
Silverstein later brought legal action against the other owners for never marketing the skyscraper properly, despite having two years of advance notice from Macmillan and for also entering talks to lease the building to Knotel, which is owned by Newmark. All parties ultimately agreed to move forward with an $80 million renovation, which included restorations to the exterior and lobby, plus the installation of new elevators. However, Silverstein alleged that Gural inflated the construction costs.
The Flatiron Building will be up for auction on March 22 with Mannion Auctions in New York. The profits are to be divided, and the owners will have the right to use their ownership stake to place a credit bid.