Signa Holding GmbH is partnering with RFR on the deal
Aby Rosen’s RFR and Signa Holding GmbH have entered into a contract to acquire the leasehold interest in the Chrysler Building from the Abu Dhabi Investment Council(Mubadala) and Tishman Speyer for around $150 million. The land underneath the property is owned by Cooper Union.
Leasehold interest breakdown: Abu Dhabi’s investment arm owns a 90% stake, while Tishman owns the remaining 10%.
Historical context: Tishman Speyer bought the Chrysler building, 666 Third Avenue, and the land between the two properties out of foreclosure in 1997 for around $220 million. Over the next three years, the firm spent $100 million to renovate the office property, and build a retail complex (pyramid-topped Trylons). Several years later, they sold a 75 percent interest in the Chrysler building and the Trylons to Germany’s TMW in a deal that valued the two assets at $400 million, the NYPost reported.
Abu Dhabi enters the picture in 2008… Subsequently, TMW sold their stake along with part of Tishman’s ownership interest to the Abu Dhabi Investment Council in 2008. That deal valued the tower and the Trylons at $800 million.
Annual ground-lease terms: Cooper Union was paid $32.5 million in 2018, and that number will increase to $41 million in 2028, according to the WSJ.
Dig Deeper: The Chrysler building spans 1,195,000 SF, and is currently 81 percent leased. Current tenants in the skyscraper include Moses & Singer, Creative Arts Agency, and Spaces.