Midtown’s Chrysler Building, an iconic part of Manhattan’s skyline, has hit the market.
The leasehold for the 77-story Art Deco skyscraper, completed in 1930, is for sale for the first time since 2019, following a contentious court battle between operator RFR and Cooper Union, which owns the land it sits on.
In January Aby Rosen’s struggling real estate firm, RFR, the last owner of the leasehold, was evicted from the property at 405 Lexington Ave. after defaulting on $21 million in rent and other obligations, Crain’s reported at the time. RFR had initially refused to leave and accused Cooper Union, a private university, of mismanagement and driving away tenants, but Judge Jennifer Shecter ultimately ruled in the school’s favor.
As a result, Cooper Union must find a new operator to take over the leasehold and has enlisted London-headquartered real estate company Savills to market the property, according to The Promote, which first reported on the news.
The more than 1 million-square-foot office building, between East 42nd and East 43rd streets, is currently 100% leased, according to information from CoStar — up from the 85.7% occupancy rate it was at last year. Notable companies taking space in the building include law firms Graubard Miller and Moses Singer and investment firm Saba Capital Management. Office rents in the building range between $65 and $79 per square foot, according to information from CoStar.
The tower is largely viewed as in need of a refresh, however. Several elevators have been out of service recently, according to court records, and tenants have complained of mice and dirty drinking water, Crain’s has reported.
RFR acquired the right to operate the Chrysler Building in 2019 for $151 million and agreed to pay $32 million a year in ground rent with plans to renovate. But Rosen’s firm stopped paying rent last year and was unable to restructure the lease.
It’s unclear how much Savills is marketing the ground lease for. David Heller, executive vice president at Savills, declined to comment on the pricing guidance but said the firm is excited for the opportunity.
“Given the strength of the leasing market and given where this sits in the market, we feel it’s a great opportunity to reimagine what is the crown jewel of the New York City skyline,” said Heller.
