Jacob Garlick last week was awarded the Flatiron Building in New York for 190 million dollars, but then he did not pay the 19 million deposit on time, and now the future of the iconic Big Apple building is uncertain .
If Garlick backs out, the practice is that the acquisition right passes to the second-place finisher, but Jeff Gural, owner of the majority stake in the Flatiron and a real estate institution in New York, does not seem interested in buying the building for that amount.
According to Gural, the building's valuation, more than 200 million dollars before the pandemic, has dropped significantly and it needs 100 million for renovations.
"I suspect he either didn't have the money or realized he overbid and decided not to proceed," court-appointed Peter Axelrod, who has now ruled out, told the New York Times. Garlick as buyer.
The Flatiron, also known as the Iron Mansion, was built in 1902 by architect Daniel Burnham and was auctioned off by court order after irreconcilable differences between its five owners stalled the renovation.
The building has sat mostly empty for four years since its longtime tenant, Macmillan Publishers, which occupied all office floors, moved out in 2019. Wedged between Fifth Avenue, Broadway and 23rd Street the Flatiron (which also gives its name to the neighborhood in midtown Manhattan) was a pioneering skyscraper when it was completed.
It was last auctioned off during the Great Depression and sold for $100,000.