A famous skyscraper in New York could be for sale. Mercer Morrison of Buzz60 has history.
One of the most recognizable skyscrapers in New York would sell for a song.
RFR Holding LLC, a New York-based real estate company headed by Aby Rosen, and Austrian real estate company Signa Holding GmbH are buying the Chrysler Building for $ 150 million, according to reports from Reuters, The Wall Street Journal and The Real Deal, quoting anonymous sources knowing the agreement.
This amount represents 81% less than the $ 800 million that the seller – the Abu Dhabi Investment Council – paid in 2008 for a 90% stake in the Art Deco Tower. The value of commercial properties in New York fell shortly after the financial crisis.
The owners put the building on the market in January.
epa07271833 View of the Chrysler Building in New York City, New York, United States, January 9, 2019. The building, built in 1930 and owned by Abu Dhabi-based investment fund Mubadala and Tishman Speyer real estate company since 2008, would have been on sale. EPA-EFE / JUSTIN LANE (Photo: Justin Lane / EPA-EFE)
The 77-storey building also presents unique financial challenges. The land beneath the tower is rented to Cooper Union School. The annual ground lease is $ 32.5 million, up from $ 7.75 million last year. It is expected to return to $ 41 million in 2028.
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Maintenance can also be expensive for aging buildings, which have to compete with newer, more modern office buildings for tenants.
The Chrysler Building spans 1.2 million square feet. Current tenants include the law firm Moses & Singer, the Creative Arts Agency and Spaces. In January, it was reported that Amazon was about to sign a contract to lease 10,000 square feet.
RFR already has several notable buildings in New York, including Mies Van Der Rohe's Seagram Building at 375 Park Avenue, Church Missions House at 281 Park Avenue South and Lever House at 390 Park Avenue.
RFR and CBRE, which represents the Abu Dhabi Investment Board, did not immediately return requests for comment.
An 80-story office building scheduled to open this week at the World Trade Center will be the third skyscraper completed on the 16-acre site where the Twin Towers once stood. (June 8)
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