New York

TexasTowelie

(116,768 posts) Mon Mar 11, 2019, 05:14 AM Mar 2019

Iconic Chrysler Building is selling at massive 80-percent discount, reports say

One of New York’s most recognizable skyscrapers is reportedly selling for a song.

RFR Holding LLC, a New York real-estate firm led by Aby Rosen, and the Austrian real-estate firm Signa Holding GmbH is buying the Chrysler Building for $150 million, according to reports from Reuters, The Wall Street Journal and The Real Deal, citing unnamed sources knowledgeable of the deal.

The sum is 81-percent less than the $800 million the seller – Abu Dhabi Investment Council – paid in 2008 for a 90-percent stake in the art-deco tower. Commercial property values in New York plummeted soon after as the financial crisis struck.

The owners put the building on the market in January.

The 77-story building also comes with unique financial challenges. The land beneath the tower is rented from the Cooper Union school. The annual ground lease is $32.5 million, up from just $7.75 million last year. It’s set to reset to $41 million in 2028.

Read more: https://www.northjersey.com/story/money/2019/03/10/new-yorks-chrysler-building-selling-150-million/3123340002/

A view of the Chrysler Building in New York, New York, USA, 09 January 2019. The building, which was originally built in 1930 and has been owned by Abu Dhabi-based investment fund Mubadala and the real estate firm Tishman Speyer since 2008, is reportedly being put up for sale. EPA-EFE/JUSTIN LANE (Photo: Justin Lane/EPA-EFE)

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Iconic Chrysler Building is selling at massive 80-percent discount, reports say (Original Post) TexasTowelie Mar 2019 OP

Wonder what the drumpf tower will sell for when it goes on the market? democratisphere Mar 2019 #1

That land lease arrangement is brutal! Surprised the investors in 2008 overlooked that. Lucky Luciano Mar 2019 #2

I'd like to know if the 2008 $800 million was an inflated price... NeoGreen Mar 2019 #3

TMW (a German investment fund) sold 75% interest in the building TexasTowelie Mar 2019 #4

democratisphere

(17,235 posts)

1. Wonder what the drumpf tower will sell for when it goes on the market?

Reply to TexasTowelie (Original post)

Mon Mar 11, 2019, 06:11 AM

Mar 2019

The Chrysler Buildings future looks difficult at best.

Lucky Luciano

(11,424 posts)

2. That land lease arrangement is brutal! Surprised the investors in 2008 overlooked that.

Reply to TexasTowelie (Original post)

Mon Mar 11, 2019, 06:21 AM

Mar 2019

I looked into buying a condo in NYC because the price was really interesting. Then I found out that there was a lease for the land...I ran out of the apartment immediately!

NeoGreen

(4,033 posts)

3. I'd like to know if the 2008 $800 million was an inflated price...

Reply to TexasTowelie (Original post)

Mon Mar 11, 2019, 07:18 AM

Mar 2019

...even for pre-crash NYC, and who sold it at that price?

TexasTowelie

(116,768 posts)

4. TMW (a German investment fund) sold 75% interest in the building

Reply to NeoGreen (Reply #3)

Mon Mar 11, 2019, 07:27 AM

Mar 2019

while Tishman Speyers Properties sold 15%. Tishman Speyers holds the remaining 10% interest.

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