?? The Flatiron sells… again; debt ceiling puts the industry on edge; and more

Here’s THE RUNDOWN:

???? The pending debt ceiling crisis has real estate — and the rest of the country — on edge. Here’s how a default would affect the residential and commercial markets.?

?? The Flatiron was sold (again) this week, as Jeffrey Gural won the building with a $161M bid. But the building’s saga continues. One attendee threatened lawsuits in an expletive-laced rant.

?? Patrick Carroll runs a $7.4B real estate empire. He’s also known for public outbursts, including spitting on a Miami restaurant manager. As he looks to sell his business, The Real Deal looked into him.?

?? Many small-time multifamily investors have gone belly-up in recent months as rising interest rates put pressure on cash-strapped syndicates.

?? A Chicago-area retail developer is taking CBRE, the world’s largest commercial brokerage, to court over a $6M commission dispute.

?? A Bel-Air estate has joined the ranks of LA’s most expensive listings. The $75M price tag places the 20,000-square-foot home just beneath Steve Wynn’s $85M Beverly Hills mansion.

THE DETAILS:

???? Debt ceiling crisis puts real estate on edge

June 1 marks the deadline for US lawmakers to agree on the debt ceiling and avoid a default on the national debt. A default could wreak havoc on commercial and residential real estate. It would also throw a wrench into a banking system already in damage-control mode. Zillow estimated the crisis could cut home sales by a quarter and send mortgage rates over 8 percent.?

?? Gural’s group wins auction for Flatiron Building

Jeffrey Gural won the auction for the Flatiron building this week with a $161M bid. Gural, a longtime co-owner of the building, was foiled in March when industry outsider Jacob Garlick swooped in with a $195M bid… but failed to follow through on the purchase. There were no significant twists to the latest auction, though it still had plenty of drama. One angry onlooker yelled at Gural’s attorney to “get ready for the f**king lawsuits,” claiming an irregularity in the auction process. Gural said he’s considering a residential conversion for the historic building.

?? What makes Patrick Carroll go tick, tick, boom?

Patrick Carroll has built a $7.4 billion real estate business as a developer and a multifamily investor in the southern US. He’s also built a controversial reputation for himself. Carroll has faced arrests, lawsuits, restraining orders and a messy divorce. Last month, he spit in the face of a Miami restaurant manager. But while Carroll’s private life makes headlines, he’s working in the background to make the biggest deal of his career: selling his empire.?

?? Small-time multifamily investors go belly-up

Times are tough for a lot of commercial owners, but they’re especially awful for small multifamily investors. These investors enter the market by pooling their money and creating a syndicate, allowing them to buy big-time assets.?

Now that the market has gone sour, many of these small players have lost big money. But while investors are left empty-handed, the syndicators can profit anyway.

In Houston, Applesway syndicator Jay Gajavelli may be doing just that. Gajavelli has been known to promise huge returns via rent hikes and tenant fees. Now, one of Applesway’s buildings is being foreclosed on, and Gajavelli is in the spotlight for all the wrong reasons.

?? GW sues CBRE for $6M commission request

GW Properties, a Chicago retail developer, is suing CBRE, the world's largest commercial real estate brokerage. The lawsuits began after a deal for a medical office fell through, as CBRE’s brokers allegedly requested a $6 million commission for the failed sale. The brokers then filed liens on GW's properties to secure the payment. As GW seeks to remove the liens, CBRE claims the developer agreed to pay commissions even if the deal failed.

?? Bel Air estate goes on sale with $75M ask

A 20,000-square-foot Bel Air mansion priced at $75 million has joined the list of LA's most expensive listings. Meanwhile, two homes in Beverly Hills, including one owned by casino mogul Steven Wynn, are listed at $85 million. Despite the price tags, some agents claim the area’s luxury market is softening.?

THE CLOSE:

Will a US default tank the real estate market and the economy? Or can lawmakers avoid the unprecedented disaster? Keep reading TheRealDeal.com to find out.