March 14, 2019
It could be the end of a nearly nine-decade run as one of Midtown’s most prominent office towers. Bloomberg News reported that the Chrysler Building’s new owners are considering converting the 77-story landmark to hotel use.
The property has traded to RFR Realty and a foreign partner Bloomberg identified as Signa Holding GmbH for $151 million—a fraction of the $800 million the Abu Dhabi Investment Council paid in 2008. However, a source told Bloomberg, upgrades to the 88-year-old property could end up costing at least that much.
Moreover, NKF’s Lawrence Wolfe told Bloomberg, “It’s a magnificent building with uninterrupted views from the high floors, but changing use is not without issues.”
Among other issues, large floor plates favored by office tenants “can pose design challenges when converting to other uses, while the landmarked lobby could make it difficult to create a dedicated entrance for hotel guests,” Bloomberg reported.
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