Iconic Chrysler Building is selling at massive 80-percent discount, reports say

[TexasTowelie]

One of New York’s most recognizable skyscrapers is reportedly selling for a song.

RFR Holding LLC, a New York real-estate firm led by Aby Rosen, and the Austrian real-estate firm Signa Holding GmbH is buying the Chrysler Building for $150 million, according to reports from Reuters, The Wall Street Journal and The Real Deal, citing unnamed sources knowledgeable of the deal.

The sum is 81-percent less than the $800 million the seller – Abu Dhabi Investment Council – paid in 2008 for a 90-percent stake in the art-deco tower. Commercial property values in New York plummeted soon after as the financial crisis struck.

The owners put the building on the market in January.

The 77-story building also comes with unique financial challenges. The land beneath the tower is rented from the Cooper Union school. The annual ground lease is $32.5 million, up from just $7.75 million last year. It’s set to reset to $41 million in 2028.

Read more: https://www.northjersey.com/story/money/2019/03/10/new-yorks-chrysler-building-selling-150-million/3123340002/


A view of the Chrysler Building in New York, New York, USA, 09 January 2019. The building, which was originally built in 1930 and has been owned by Abu Dhabi-based investment fund Mubadala and the real estate firm Tishman Speyer since 2008, is reportedly being put up for sale. EPA-EFE/JUSTIN LANE (Photo: Justin Lane/EPA-EFE)

[democratisphere]

1. Wonder what the drumpf tower will sell for when it goes on the market?

The Chrysler Buildings future looks difficult at best.

[Lucky Luciano]

2. That land lease arrangement is brutal! Surprised the investors in 2008 overlooked that.

I looked into buying a condo in NYC because the price was really interesting. Then I found out that there was a lease for the land...I ran out of the apartment immediately!

[NeoGreen]

3. I'd like to know if the 2008 $800 million was an inflated price...

...even for pre-crash NYC, and who sold it at that price?

[TexasTowelie]

4. TMW (a German investment fund) sold 75% interest in the building

while Tishman Speyers Properties sold 15%. Tishman Speyers holds the remaining 10% interest.