The iconic Flatiron Building in Manhattan is up for auction. The date has been set at March 22nd for the Fifth Avenue landmark to go under the gavel. It all comes from a New York State Judge’s order to settle the dispute between the owners which has been ongoing for years.
ABS Real Estate Partners, GFP Real Estate, and Sorgente Group own 75% of the 22-story triangular building. They sued seeking a partition sale in 2021, and are looking to divorce themselves from Nathan Silverstein, the owner of the other quarter of the building. The dispute arose after the building’s longtime key tenant MacMillan Publishers announced in 2017 that it would leave in two years. At the time, the book publisher occupied all 21 floors of the building. Since then, the three owners have clashed with Silverstein over issues concerning constructing costs, tenant arrangements, parcel division, and the veto of their proposed business plan. The building has been empty since 2020.
A partition sale is a traditional procedure when multiple property owners can’t resolve their differences. The March 22 auction will be conducted by Matthew Mannion of Mannion Auctions. Sorgente, GFP and ABS have indicated in court filings that they expect to bid on the Flatiron Building, which can be done with their ownership stakes forming what is known as a credit bid; this credits them for the portion they own.
The Flatiron Building was the first skyscraper built north of 14th Street in Manhattan, constructed in 1902. Originally a construction company headquarters before the Great Depression, the building was designated a National Historic Landmark in 1989.
