Signa Holding is in negotiations to sell its half of New York's Chrysler Building, says a report in the Financial Times. The European property company is in urgent need of the cash as it prepares for a possibly painful wind down, according to administrator Christof Stapf.
Signa, and its partner in the 1.2-million square foot building, RFR, paid $151 million for the iconic art deco building in 2019.
The Financial Times reports that the building has a ground lease that requires the owners to pay escalating annual rents to the Cooper Union private college. Those rents have risen from $7.5 million in 2018 to $32.5 million in 2019 and are set to reach $41 million in 2028. The owners are currently negotiating with Cooper Union's board to restructure the ground lease.
CoStar Group reports that the building is more than 90% leased.
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