Monday, March 11, 2019


Even somebody who has never been to New York City would know that it has some of the most memorable structures in the world. In terms of buildings they include postcard images such as the Empire State Building, Met-Life, and even the lost Twin Towers of the original World Trade Center (now mostly taken over by the One WTC). And then there is the skyscraper with the Art Deco-styled spire, the Chrysler Building that was once headquarters of automaker Chrysler. Since 2008 it has been mostly owned by the Abu Dhabi Investment Council, at least until they put it back on the market in January. And somebody has answered it.
USA Today reports that a buyer has emerged for the Chrysler Building, after its 90% owner the Abu Dhabi Investment Council, offered it for sale at the start of the year. The prospective purchase shall be made by RFR Holding LLC, a company co-founded by German-born American real estate giant Aby Rosen. Remarkably, the price for the Chrysler Building is but a near rock-bottom $150 million, a far cry from the $800 million the ADIC paid to the previous majority stakeholder TMW back in 2008. This massive drop in value can be attributed to the global financial crisis that went on that year and before.
In addition to the building itself, RFR Holding will acquire the nearby Chrysler Trylons commercial pavilions as part of the $150 million package. One other reason for the price being just that much is because the ground that the main skyscraper stands on is on annual lease from the Cooper Union School. While the lease value was but $7.75 million in 2017, CUS jumped it up to $32.5 million last 2018, with further increases in every following year. A projection would have the rent amounting to $41 million by 2028.
The Chrysler Building, completed in 1930, spent one month short a full year as the world’s tallest building at the time before being surpassed by the Empire State Building. At 77 floors high, the nearly nine decades old building is a far cry from the more modern skyscrapers around it, with more glass on all sides to let the sunlight in when needed. Furthermore, resources must also be allocated to its maintenance due to age.
Neither ADIC and RFR Holding have made official comments to the progress of the Chrysler Building sale, with all information shared only by anonymous inside sources. Its current tenants include the Creative Arts Agency and the Moses & Singer legal firm. Amazon however has expressed interest in leasing some workspace.
Image from New York Post


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