Search
 

75% Interest in Chrysler Building Sells for $300 Mil, Experts Question Trend

NEW YORK CITY-TMW, a German investment group, has purchased the majority of interest in the building known for its Art Deco design--even given a nod in the musical, Annie. Tishman Speyer and Travelers Group will retain the other 25%.

By Amy Vaughn | Updated on March 06, 2001

NEW YORK CITY-The Chrysler Building has joined the list of trophy buildings over the last six months to have significant interest sold. Rockefeller Center and the World Trade Center are among the most notable, the sales of which have been covered extensively by GlobeSt.com. Now, 75% of the interest in the Chrysler Building has been sold to TMW, a German investment group, for a total of $300 million. Industry experts debate whether or not the trophy trend is wise.

Many in the industry have indicated the most recent deal related to the 77-story, 1.2-million-sf was a matter of financing. In the case of Rockefeller Center, there were rumors when the asking price wasn’t offered in the bidding process that ownership would seek financing instead. In this deal, Tishman Speyer and Travelers Group will retain ownership, and Tishman’s role has been described as a controlling interest and management of the building. Tishman Speyer was the buyer in the Rockefeller Center deal. The value of the Chrysler Building’s value has been readjusted to $400 million as a result of this deal.

Some industry experts see this deal as part of a larger trend to cash in on the hot market before a slowdown could hurt real estate. “The year 2000 was the year where every trophy and mature property went up for sale,” Peter Pattison of Peter Pattison Ltd. “The sophisticated developers and owners thought that the values had peaked so there was an enormous amount of sales ending with the World Trade Center.” Others note that this may not be just about foresight and may not be the wisest trend.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.