A New Buyer for the Chrysler Building?

"The current rent, which is $32.5 million, and set to increase to $41 million in 2028, is widely acknowledged to be impossible - the office rents the the building can command do not approach anything near that amount. And that's aside from the money that the next owner will have to sink into repairing and upgrading the antique building, expected to be well over $100 million."

"The previous rent reset - from $7.78 million to $32.5 million - is why Aby Rosen's RFR and Signa Holdings were able to buy the ground lease for a mere $151 million in 2019, a fraction of what the Abu Dhabi Investment Council spent for its 90 percent stake a decade earlier. But, as it turns out, that wasn't a deal at all."

Tishman Speyer is in advanced talks to retake the Chrysler Building's ground lease from Cooper Union. Cooper Union has owned the land for more than 100 years. RFR lost the lease after defaulting on ground-rent payments. The current ground rent is $32.5 million and is scheduled to rise to $41 million in 2028, a level far above achievable office rents. The building requires extensive repairs and upgrades likely exceeding $100 million. Tishman previously managed the property and completed the last major overhaul in 2000. A prior rent reset enabled RFR and Signa to acquire the lease for $151 million in 2019.

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