Property gallery
Sorgente Group fondation
This January Mainetti revealed his intentions for the property: a hotel conversion.
The upside is that the building’s facade must remain the same, according to the Landmarks Preservation Commission—it is already zoned for hotel space. But that won’t stop the new owners from putting up some serious exterior lighting to highlight the architecture and blind the neighbors.
The building is a piece of history, more than a century old now, designed by architect Daniel Burnham and completed in 1902. It has the distinction of being the world’s first steel-frame skyscraper.
Of course one could argue this is selling the soul for the sake of the body. Long standing tenants, including book publisher St. Martin’s Press, will be moving out as the Sorgente Group acquires the rest of the building over the next 10 years. The group acquired over 50% ownership in the building last year as part of their Historic and Trophy Buildings Fund.
Ah yes… Italians. With their trophy cars, trophy wives and trophy buildings.
Mainetti told the NY Daily News, “We will treat the Flatiron like the work of art that it is,” but I can’t help but wonder if she’ll wind up playing second to a more captivating mistress—admired for her looks, but passed over for the good wine and conversation.
The Apthorp maybe? Seems like Mainetti’s type and I hear she’s been giving the men trouble lately.
Sorgente Group now owns more than 50 percent of the building at Fifth Avenue and 23rd Street, a 1902 property named for its resemblance to a clothes iron. Sorgente didn't disclose the purchase price
The Sorgente Group S.p.A., which now controls just over 50 percent of the building, would not say how much it paid for its share. The value of the 22-story building, which sits on a triangular lot in Manhattan, is estimated to be $190 million.
The Sorgente Group said it will complete payment by June and might increase its stake.
"With this acquisition, Sorgente Group has exceeded 50 percent ownership of the Flatiron property, with further possibilities offering up to 75 percent ownership," Valter Mainetti, managing director of the Sorgente Group, said in a statement.
The seller was the real estate firm Newmark Knight Frank, which will keep a minority interest and provide management services.
The Flatiron Building, which earned its name because it's shaped like an old-fashioned clothes iron, was erected in 1902 and was the world's first steel-frame skyscraper. It was named a National Historic Landmark in 1989.
Sorgente's other New York acquisitions include a stake in the Chrysler Building, an art deco skyscraper on the East Side.
The Rome-based Sorgente Group, which specialises in buying "trophy" buildings, has bought more than 50% of the wedge-shaped New York landmark which was the world's first steel-frame office tower when completed in 1902.
A favourite among tourists and architectural enthusiasts, the Flatiron building is covered in intricate decorative carvings. At 87 metres, it was the tallest on New York's skyline until the Metropolitan Life tower was completed in 1909.
The 22-storey building's triangular shape was so unusual when conceived that sceptics speculated that it would fall over, nicknaming it "Burnham's folly" after architect Daniel Burnham.
Sorgente, which owns a string of historic buildings in France and Italy, expressed satisfaction at taking control of such a prominent landmark.
"This is one of the world's most spectacular trophy properties," its chief executive, Valter Mainetti, told New York's Daily News. "We will treat the Flatiron like the work of art that it is."
In the early part of the last century, the Flatiron's position on the corner of Broadway and 23rd Street in downtown Manhattan was blamed for unusual wind currents that sent womens' skirts billowing. According to New York folklore, the police chased away voyeuristic men lurking in the area by uttering the phrase: "23 skidoo!"
Sorgente has been negotiating to buy the property since the dollar was at a low point last year, making purchases relatively cheap for foreign investors. Several other New York landmarks were the subject of overseas buyouts including the Rockefeller Centre, bought by Japan's Mitsubishi Group.
Plans to transform the office block into a hotel could take up to a decade as tenants, including the book publisher St Martins Press, have lengthy leases outstanding.
The Sorgente Group will have to wait about 10 years to buy out the remaining tenants.
Sorgente won't say how much it paid for its more than 50 percent share of the building, which is estimated to be worth $190 million.
Landmarks Preservation Commission officials say they have no problem with turning the building into a hotel as long as the façade is not changed.
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BY JASON SHEFTELL DAILY NEWS STAFF WRITER
An Italian real estate investor has sealed the deal to buy a majority stake in the Flatiron Building in a quest to turn the landmark into a world-class hotel.
The Rome-based Sorgente Group has bought just over 50% of the iconic structure and plans to keep buying more.
Time magazine reported the deal had been done last summer, but negotiations continued and an agreement was made final only this month.
Sorgente Group officials would not say what they paid for their share of the building, estimated to be worth $190 million.
"This is one of the world's most spectacular trophy properties," said Sorgente CEO Valter Mainetti. "We will treat the Flatiron like the work of art that it is."
That includes tapping an Academy Award-winning lighting designer to illuminate the triangle-shaped building like a sculpture in a museum, he said.
Sorgente plans to continue increasing its ownership share in the building over the next decade, but plans to transform the building into a hotel will have to wait about 10 years until remaining tenants are bought out. Book publisher St. Martin's Press is the primary tenant.
The city won't stand in Sorgente's way. The Fifth Ave. and 23rd St. location is already zoned for a hotel, and the Landmarks Preservation Commission said it's a go as long as the stunning facade is not modified.
Built in 1902 by architect Daniel Burnham, the Flatiron Building was the world's first steel-frame skyscraper.
The 22-story building soon became one of the most recognizable structures on Earth, appearing on more postcards than any contemporary architectural wonder.
Sorgente's Historic & Trophy Buildings Fund acquires prestigious structures globally. The company recently bought and sold an interest in the Chrysler Building and owns a number of architecturally significant buildings and hotels in France and Italy.