Gurals, Sorgente planning $80M upgrade for the Flatiron Building

CBRE’s Mary Ann Tighe is marketing the property
June 28, 2019 11:50AM

GFP Real Estate principal Jane Gural-Senders and the Flatiron Building at  175 5th Avenue (Credit: Pixabay)

GFP Real Estate principal Jane Gural-Senders and the Flatiron Building at  175 5th Avenue (Credit: Pixabay)

The Flatiron Building is getting a facelift as it seeks a new anchor tenant.

Owners GFP Real Estate and the Sorgente Group are planning to spend between $60 million and $80 million to upgrade the 117-year old landmark, the New York Times reported.

Work crews will arrive soon to install central air conditioning and heating systems, a new sprinkler system, a second staircase, an upgraded elevator system and a renovated lobby. They’ll also tear out dropped ceilings and sheet rock partitions as the building seeks to lure a single tenant to replace Macmillan Publishers, which moved into the Equitable Building earlier in June.

CBRE’s Mary Ann Tighe is marketing the property.

The work will likely take about a year to complete.

Tighe hopes to be able to start showing some of the floors to potential tenants by Labor Day, and the owners of the building say they have already gotten some offers from co-working firms and that a major tech company has toured the building as well.

Knotel was reportedly close to a deal to lease the building early in 2019, but this never came to fruition.

The neighborhood has become popular for tech companies in recent years, and rents in the area go for an average of more than $80 per square foot. However, the owners are more interested in finding the right tenant for the building than they are in finding the tenant who can pay them the most money.

“People want it, but who’s going to be the best?” GFP Real Estate executive director Jane Gural-Senders told the Times. “You want something that’s going to bring greatness.” [NYT] – Eddie Small