Italian Firm Buys Majority Control of Flatiron Building

flatironwallyg Italian Firm Buys Majority Control of Flatiron BuildingValter Mainetti’s Sorgente Group has bought a majority stake in the Flatiron Building, according to Time.com.

"Though not quite the shock of the Mitsubishi Group’s purchase of Rockefeller Center, the Flatiron’s falling into foreign hands nevertheless carries symbolic weight as international investors take advantage of the upheaval in the real estate market and weakness of the U.S. dollar. The euro closed Monday at $1.56."

…"He has been building his Michelangelo Fund around investments in so-called "trophy" properties, which have historical or architectural value beyond the typical calculus of location and square footage. In 2005, he bought a 27% stake in the company that owns the Chrysler Building. A year later he acquired a minority share in the Flatiron, which today is valued at a total of $180 million. With the latest deal, he now holds 53% share of the famous building. ‘The Flatiron is expensive, but with the [cheap] dollar, it made sense to increase our share,’ said Mainetti. ‘The stability of the New York real estate market is unique. This current crisis will pass, and the dollar will reestablish itself. We are confident.’"

More on this soon.