NY’s iconic Chrysler Build­ing up for sale

Financial Chronicle - - MISCELLANY - AGENCE FRANCE PRESSE

THE Chrysler Build­ing, one of the most iconic struc­tures in New York, has been put up for sale by its own­ers, Emi­rati in­vest­ment firm Mubadala and real es­tate group Tish­man Speyer.

The own­ers did not set a sell­ing price, a source close to the sale told AFP on con­di­tion of anonymity, con­firm­ing a re­port that was first pub­lished in The Wall Street Jour­nal.

The build­ing in mid­town Man­hat­tan, con­sid­ered an Art Deco mas­ter­piece, was ac­quired in 2008 by Mubadala, which paid $800 mil­lion for a 90 per­cent stake.

Tish­man Speyer, which had bought the build­ing out­right for a re­ported $210-250 mil­lion in 1997, re­tained a 10 per cent stake. Nei­ther firm would of­fer a com­ment when con­tacted by AFP.

Tish­man Speyer has hired real es­tate group CBRE to man­age the sale of the build­ing at the in­ter­sec­tion of 42nd Street and Lex­ing­ton Av­enue. The an­nounce­ment comes at a dif­fi­cult time for the New York real es­tate mar­ket, es­pe­cially in Man­hat­tan.

Devel­op­ment of the Hud­son Yards neigh­bour­hood, on Man­hat­tan's West Side, will soon be com­plete, with more than 1.6 mil­lion square me­tres of new of­fice and res­i­den­tial space. That has driven prices down even fur­ther for older build­ings.

An­other fac­tor for po­ten­tial buy­ers to con­sider: the land on which the Chrysler Build­ing stands is one-third owned by Cooper Union, a pri­vate univer­sity.

In 1997, Tish­man Speyer ne­go­ti­ated a long-term lease with the univer­sity that ran through 2147. That deal called for the an­nual rent to rise from $7.8 mil­lion in 2017 to $32.5 mil­lion from 2019-2027, ac­cord­ing to doc­u­ments seen by AFP. The value of the land alone was es­ti­mated at $679 mil­lion in late 2017.

The Chrysler Build­ing, which opened in 1930, stands 1,046 feet tall. It was the world's tallest build­ing, but only for 11 months, when it was de­throned by the Em­pire State Build­ing, also in Man­hat­tan.

The build­ing was a per­sonal project for Wal­ter Chrysler, the founder of the car man­u­fac­turer that bears his name, but re­mained sep­a­rate from the auto busi­ness.

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