Historic Flatiron Building Goes Up For Auction Today in Manhattan

By: Michael Young and Matt Pruznick 8:00 am on March 22, 2023

A new chapter in the storied history of the Flatiron Building is set to unfold today as the New York City landmark goes up for sale at a public auction. Designed by Daniel Burnham completed in 1902 as the Fuller Building, the structure quickly became an emblem of New York with its ornate Renaissance Revival flourishes and prominent wedge-shaped design formed by the confluence of Broadway and Fifth Avenue.

In 2019, GFP Real Estate, Newmark, Sorgente Group, ABS Partners Real Estate, and Nathan Silverstein began an $80 million renovation of the building led by Beyer Blinder Belle, but a series of disputes among the owners delayed progress beyond the initial one-year scope of work. These differences eventually reached an impasse, leading to a New York Supreme Court ruling to put the property up for sale. Mannion Auctions will host the transaction with a starting price of $40 million. The owners intend to retain their stake in the building, and are permitted to put forward offers in the form of credit bids using their existing stakes in the property.

The 21-story structure’s interiors have sat vacant since its last tenant, MacMillan Publishers, left in 2019 after occupying the site for nearly 60 years. Scaffolding and black netting covers three corners of the exterior, remnants of the painstaking process to restore the limestone and terracotta façade over the past four years. The restoration also involved the removal of all window-mounted air conditioning units, which were to be replaced by an upgraded internal HVAC system. Other elements of the planned renovation included an updated lobby space, revised ground-floor retail frontage and storefront louvers, façade changes to the 21st floor behind the roof parapet, and new elevators.

Below are photographs taken over the past few years showing the landmark from various angles.

Photo by Michael Young

Tumult began in 2021 when Silverstein was sued by the other four owners, who alleged his business decisions had led to their inability to land a new tenant, and sought to dissolve their partnership. Jeff Gural of GFP Real Estate stated in an affidavit that Silverstein opposed the modernization of infrastructure, including fire safety upgrades that were necessary to legally rent out the building. Gural also railed against Silverstein’s proposal to split the office space into five separate properties, which the building’s landmark status prevented.

Silverstein responded with a countersuit that alleged Gural had caused the renovation costs to skyrocket by means of overpaying for materials. The countersuit also contended that the four other owners were colluding to lease the building below its market rate to Knotel, which is largely owned by Newmark.

The sale will be held by auctioneer Matthew D. Mannion of Mannion Auctions, LLC.

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