Real estate experts say such conflicts aren't particularly unique in New York City, where roughly 100 buildings have ground leases, according to a 2015 Times article. But what is unusual is a college owning the land beneath such a significant building—and relying so heavily on real estate for its business model.
As of Oct. 31, RFR had been evicted and ordered by the Supreme Court of the State of New York not to interfere with Cooper Union’s operation of the building or collection of the tenants’ rental payments.
Cooper Union was founded in 1859 by Peter Cooper, an inventor and philanthropist, who imagined it educating the working class, regardless of race or gender. The mission resonated with Andrew Carnegie, according to Ethan Ris, a historian of higher education and an associate professor at the University of Nevada, Reno.
Court filings show that in July, Cooper Union gave the owners a 30-day warning about the missing payments, which totaled over $8.6 million, plus interest. The college eventually moved to evict the owners in September, prompting RFR to sue, alleging the eviction had not followed proper procedures.
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