Calay News
New York’s iconic Flatiron building in midtown Manhattan will be auctioned on March 22 to settle a dispute between its owners. The building has been vacant since its last tenant, McMillan Publishers, vacated it in 2019. The business partnership is comprised of real estate firms Sorgente Group, Newmark, GFP Real Estate, and ABS Real Estate Partners, which own 75% of the building, while businessman Nathan Silverstein owns 25%. The owners have been engaged in a legal battle since 2021 due to their disagreement on a business plan to lease the space to new tenants.
The matter has progressed through the courts to the state Supreme Court, where it was approved in January that the building be auctioned and the proceeds divided between the parties according to the fraction they own. The owners also have the right to use their interest to bid, and Sorgente, GFP, and ABS have indicated in their legal documents that they plan to do so.
In 2019, the building’s owners undertook an $80 million renovation to restore its facade and modernize its interior. However, the renovation was the subject of dispute as Silverstein accused one of GFP’s principles of inflating costs.
The auction of the Flatiron building is a move to resolve the dispute between the owners, and it is hoped that a favorable solution will be reached for both parties. The building is an iconic symbol of New York and has been the subject of interest for many investors and potential buyers in the past.
