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BY DAN DURAY

We often talk about design that crosses the line into the realm of art, and vice versa. This month, a new show called "The Third Room", physically realizes this crossover: It takes place in the space between the Cristina Grajales (she does design) and Leon Tovar (he does art) galleries, which share an open 6,000-square-foot floor of a former paper factory in Manhattan's Flatiron district. "It's the space where we meet in life, and in sensibility," says Grajales, who is from Colombia and whose gallery focuses on 20th-century works. Tovar, also Colombian, specializes in 20th-century Latin American art, an exceedingly popular market at the moment. The new show - in its entirety - is a sculpture by the Venezuelan artist Marisol. Tovar bought the 1981 piece, which depicts a seated and deconstructed Pablo Picasso, at a Sotheby's auction for $112,500 last year - a relative steal, since there were only two other bidders (one of them, according to Tovar, was the Whitney Museum of American Art). Picasso's torso is a carved block with two sets of hands, one on detached furry legs and the other on the arms of a cubist but rustic chair. It's a handsome object, and one that Tovar things perfectly summarizes the focuses on both galleries. "There are similarities of thinking everywhere," he says. "Like the pyramids in Mexico and the pyramids of Egypt - that's the beauty of connections."