The Chrysler Building’s former owner is circling the orphaned tower.
The famed Midtown edifice has been without an owner since last spring, with high costs and overdue upkeep looming large over any potential deal.
Tishman Speyer is now the reported front-runner in “advanced talks” to renew its former ownership there, Crain’s reported — but the Art Deco gem’s longtime ground lease holder might need to make some concessions.
Developed in 1930, the Chrysler Building rises 77 stories above Midtown, and offers tenants direct access to Grand Central.
Tishman Speyer took up ownership of the iconic office tower in 1997 for $220 million, and undertook its most recent renovation back in 2000. The company sold off its stake piece-by-piece over the years, including on 2008 deal that valued the building at $800 million.
By 2019, however, Tishman Speyer’s ownership was handed over to RFR and Signa Holding in a final transaction that valued the iconic Chrysler Building at just $150 million. Its sky-high ground lease was largely to blame, and continued to be a thorn in the side of negotiations.
Tishman Speyer’s return to the Chrysler Building’s hallowed halls reportedly depends upon negotiating the rent charged by Cooper Union, the East Village college and nonprofit owner of the ground lease for more than a century.
The building’s annual ground rent quadrupled in 2018 from $7.75 million to $32.5 million. It’s set to increase again in 2028 to $41 million, according to the college’s recent financial statement.
The eyes of the city’s commercial real estate world have remained trained on the Chrysler Building since early last year, after a judge allowed Cooper Union to evict RFR. The former owners were reportedly in default of $21 million in ground rent, and had previously argued in court that Cooper Union’s rate didn’t reflect the harsh realities of the market, or the shabby state of the building.
Other office real estate powerhouses, including Savanna and SL Green, have previously expressed interest in the tower.
Savills is handling the current back-and-forth between Cooper Union and Tishman Speyer, Crain’s reported. It’s possible the firm will demand Cooper Union lower the ground rent from the $41 million they had in mind, given the historic tower’s costly need for repairs, upgrades and new tenants.
The Chrysler Building trails behind other historic towers in renovations and office leases. CoStar recently set the Chrysler Building’s vacancy rate at 14%, and current tenants have complained of elevator outages, dirty water and mice problems.
https://nypost.com/2026/02/03/real-estate/there-may-be-a-new-buyer-for-the-chrysler-building/
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