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The tallest building in the world, New York's iconic Chrysler Building will be sold at a fraction of the price for which it was purchased, according to media reports citing sources close to the deal.
The real estate company RFR Holding LLC, which owns several prestigious buildings in Manhattan, as well as a foreign partner are about to buy the skyscraper for about $ 150 million, the Wall Street Journal reported. Although the report does not name the second party to the transaction, Reuters said it was Signa Holding GmbH, the largest private real estate company in Austria.
An agreement to buy the Chrysler building from its current owners, the Abu Dhabi Investment Council, would have been signed on Friday. The building was put on the market about two months ago.
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In 2008, just before the collapse of the stock market, the government investment arm of Abu Dhabi spent $ 800 million to acquire a 90% stake in the Art Deco Tower, which claims the title of the tallest building in the world since less than a year. year before the Empire State Building of New York stole the crown in 1931.
The huge drop in price is partly explained by the fact that the transaction does not include the land located under the property, which belongs to the Cooper Union Art School. This means that buyers will have to pay the school a considerable sum for land rent, which amounted to $ 7.75 million a year in 2018 and amounted to $ 32.5 million. dollars this year. It is expected to reach $ 41 million in 2028.
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Another challenge for new homeowners will be attracting new tenants, which could require an investment of approximately $ 200 million. About one-third of the 77-story tower is vacant or will become so in the coming years, and the building may require major renovations to attract customers.
The Chrysler Building, with its metal eagle statues placed around the building, is one of the most recognizable in the world, even for those who have never been to New York. He has been featured in blockbusters such as Men in Black 3, Spider Man and Armageddon, among others.
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