The Chrysler Building/ Image credit: Wikimedia Commons
NEW YORK CITY—RFR, the New York City-based real estate investment firm, and SIGNA Group, the privately managed, European holding company focusing on the real estate, retail and media sectors, have announced the completion of their acquisition of the Chrysler Building and the adjacent Trylons Pavilion.
Last month multiple news outlets reported Tishman Speyer Properties and an Abu Dhabi fund, now a division of Mubadala, sold the iconic, 77-floor, landmarked Midtown East tower at a substantial loss, for approximately $150 million.
RFR and SIGNA say they are continuing their longstanding relationship in a joint venture in purchasing the property. In a joint statement they provided the following remarks:
“The Chrysler Building is an extraordinary New York City icon that deserves intelligent revitalization,” said Aby Rosen, co-founder and principal of RFR.
Jürgen Fenk, a member of the SIGNA Group executive board, said, “We are thrilled that the Chrysler Building represents our first real estate acquisition in the US and look forward to working with RFR to enhance the building's stature as a New York City landmark.”
A spokesperson for the companies states that neither RFR nor SIGNA are commenting beyond their released statements.
In January, the art deco skyscraper that's located at 405 Lexington Ave. was listed for sale with CBRE's Darcy Stacom and Bill Shanahan as the brokers. CBRE declined to comment on today's announcement.
The $150 million price tag as reported in early March represents a significant slashing of the price from its last transaction. In 2008, Tishman Speyer maintained a 10% interest but sold a 90% share of the property to the Abu Dhabi Investment council for $800 million.
Built in 1930, the building is older. Plus, the Cooper Union school owns the ground beneath the construction and the ground lease amounts were rising sharply—from $7.5 million in 2017 to $32.5 million in 2018, according to the Wall Street Journal.
Subsequently, on April 2, the New York Post reported Rosen has plans to revitalize the property, adding restaurant options reminiscent of the members' club once housed on the upper floors. The publication wrote Rosen is considering adding an observation deck. The article also stated the bidding for the Chrysler Building was reportedly around $100 million.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
