The new owner of New York City’s famous Flatiron Building has missed his payment deadline, making ownership of the building in limbo.
The New York real estate scene was shaken up last week after unknown buyer Jacob Garlick swooped in and won the Fifth Avenue icon for $190 million at auction.
The new owner is already running into trouble. The terms of the March 22 sale required Mr. Garlick to pay 10%, or $19 million, of the sale price by Friday, according to The Real Deal, a real estate news outlet.
Mr. Garlick is seeking an extension from a court-appointed referee. If he strikes out, the building will go to the second-highest bidder.
The only problem: The second-highest bidder doesn’t want it. Jeffrey Gural of GFP Real Estate, former partial owner of the building, told The Real Deal that he was not interested in exercising his option to buy it for $189.5 million.
“It was a lot of money. You still have to spend $100 million to renovate the building,” Mr. Gural said.
If Mr. Garlick can’t deliver the cash, the building will be open for bidders again.
Mr. Garlick’s firm, Abraham Trust, invests in venture capital, mergers and acquisitions and private equity buyouts. He told reporters after the auction that he has wanted to own the Flatiron Building since he was 14. Now he might miss his chance.
