The curious case of the Flatiron Building... and more top stories from the week

The winning bidder failed to pay a $19 million deposit on Friday. Mar 26, 2023 [View in Browser]( | [$1 for 1 Month](     In today’s newsletter, a deal for the Flatiron hits an early roadblock, a $500M offer for a Miami building, a father-son lawsuit… and more.   Tough times for dealmakers It's been a tough time for real estate. Big moves are still being made, but not without challenges. Take the Flatiron Building, for example. Just as quickly as it appeared to have a buyer, the ownership status of the iconic, but beleaguered building was muddied once again this week. The big news up until Friday was that Jacob Garlick, an investor completely [unknown in the city’s real estate community](, purchased the Flatiron Building at auction [by bidding an eye-watering $190 million](. Garlick said following his winning bid that it was a lifelong dream for him to own the Flatiron, which is one of New York’s most famous buildings, but has sat mostly empty since 2019. The prospect of the expensive renovation — estimated to be in the neighborhood of $80 million — led to a fracture in the previous ownership group, where four of the five owners [filed to sell their 75 percent stake]( in the building. One of the Flatiron’s previous owners, Jeffrey Gural, went into the auction as a favorite to secure the 120-year old building. Instead, the bidding ended with Gural looking confused and upset, while Garlick knelt on the stairs of the courthouse. But Garlick [didn’t even clear the first hurdle]( of the terms of the sale, which was to put down $19 million, or 10 percent, of his $190 million bid by the close of business Friday. A court could grant Garlick an extension to come up with the deposit or, if that doesn’t happen, the next-highest bidder, Gural (at $189.5 million), would have the option to buy the building. Gural, however, said he wasn’t going to exercise the option at that price, meaning the Flatiron Building could come full circle and go back on the auction block. Meanwhile, in South Florida, David Martin’s Terra has become the latest firm to [make an offer for the Castle Beach Club]( condo building in Miami Beach. His offer? Half a billion dollars. The building has received almost a dozen bids, including another $500 million offer from Related Group and 13th Floor Investments, but those bids were withdrawn as dark headwinds discouraged dealmakers. If Terra can get unit owners on board, the building may finally get its new owner. Finally, in Chicago, a deal that did go through is causing some family drama. It’s [father versus son]( at Chicago’s Fulton Market. The younger Lerner (Michael N.) sold a dev site for $35 million to Crescent Heights. Now, the father (Michael J.) is claiming that his son’s 33 percent stake in the property actually belonged to him. These and more stories below.     [I'm an image]( [Terra offers $500M for Miami Beach building]( David Martin’s Terra offered $500 million for an aging Miami condo building. The offer comes months after a similar offer from Related Group and 13th Floor Investments fell through. [I'm an image]( [Lerner vs. Lerner over $35M deal]( MCZ Development boss Michael J. Lerner is trying to usurp the equity that his son had in a $35 million deal to sell a Fulton Market development site. [I'm an image]( [The Real Brokerage raises agents’ fees]( The Real Brokerage is doing everything it can to become profitable. Its latest move? Raising fees on agents. The brokerage, which has no offices and has automated many positions, lost $20 million last year.   [I'm an image]( [Brand Studio How Gatsby Investment is Offering Short-Term Investments with 20%+ returns]( [I'm an image]( [LA developer accused in murder-for-hire lawsuit finds more legal troubles]( The lawsuits are piling up for Arthur Aslanian, and the details — if true — couldn’t look worse. The LA developer is in custody ahead of an upcoming murder-for-fire trial, after he allegedly paid $40,000 to have two business partners killed (the assassinations weren’t completed). Now, Aslanian’s former tenants are accusing him of assault, intentional infliction of emotional distress, negligence, and even starting a fire in his own building in an attempt to drive them out. [I'm an image]( [Austin’s most expensive condo]( Four Seasons’ $830 million Lake Austin development has its first listing, and it did not disappoint. The property has claimed the record for the most expensive condo listing in Austin at $6.8 million. Potential buyers will have to be patient, though. Construction will begin later this year, with expected completion in 2026. [I'm an image]( [SVB owner approved to spend $100M]( Selling a failed bank's assets is an expensive business. A New York bankruptcy court judge approved Silicon Valley Bank Financial Group to spend up to $100 million as it sorts through the financial mess left by the bank’s failure. The now-defunct SVB had $11 billion in real estate loans.   [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2023 TheRealDeal. All rights reserved. [View Online](