March 11, 2019
The owners of the Chrysler Building have reached a deal to sell the Midtown landmark for a little more than $150 million, a substantial markdown, the Wall Street Journal reported. RFR Holding and a foreign partner have reportedly signed a contract to buy the 77-story office tower.
The Abu Dhabi Investment Council acquired a 90% stake in the property for $800 million in 2008. RFR reportedly beat out RXR Realty and Ashkenazy Acquisition Corp.
A couple of major issues with the property enabled the buyers to acquire it at a fraction of its value, the WSJ reported. One is steep escalations in the annual rent payments due to the Cooper Union school, which owns the land beneath the Chrysler Building. Another is looming vacancies in the 88-year-old tower. The property has about 400,000 square feet of space that is either vacant or will become available in the next few years.
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