The iconic Chrysler building in New York was sold nearly 80% cheaper than in 2008

The Chrysler Building, one of New York's most iconic buildings, has been sold at a loss to its owners, to the Mubadala Investment Company and the Tishman Speyer Real Estate Group, US press reported.

According to the Wall Street Journal, this 77-storey building, considered a masterpiece of art deco architecture, has been sold for US $ 150 million to RFR's real estate investor. Aby Rosen and an unidentified "foreign partner".

RFR already owns several iconic buildings in New York, including the Seagram Building – designed by famed German-American architect Mies van der Rohe – Church Missions House and Lever House.

The Mubadala fund had disbursed 800 million US dollars in 2008 for 90% of its capital.

Tishman Speyer, who had bought the entire building for about $ 210 million to $ 250 million in 1997, had retained 10%, but sold it to new buyers.

This sale comes at a difficult time for the real estate market in New York in general and in Manhattan in particular.

The Hudson Yards on Manhattan's west coast will soon have more than 1.6 million square meters of new office space and housing, which will further increase the downward pressure on older buildings.

Another element that could frighten potential buyers is that the land on which the Chrysler is built belongs to a third party, the private Cooper Union University.

In 1997, Tishman Speyer negotiated with the faculty a long-term lease agreement until 2147, stating that the rent would increase from 7.8 million USD in 2017 to 32.5 million USD per year from 2019 to 2027 and should rise to 41 million US dollars from 2028.
Only the value of the land was estimated at 679 million USD at the end of 2017.

The Chrysler has more than 111,000 square meters. Current tenants include the Moses & Singer Studio, the Creative Arts Agency and the Spaces Collaborative Working Company. In January, it had been envisaged by Amazon to conclude an agreement to occupy about 1,000 square meters.

As reported in various media, the tower that will turn 90 next year needs to be updated, which implies a significant investment. It is also a challenge in a protected building as a historical monument, making it difficult to carry out any kind of work.

According to real estate badysts reported to The Wall Street Journal, the Chrysler currently has nearly 40,000 square meters.