(NEW YORK, NY) — One of Manhattan most iconic buildings, the Chrysler Building is up for sale. The art deco styled tower opened its doors in 1930, taking 10 years to complete. The CBRE Group, commercial real estate services and investment firm, was hired to market the property, although it has not been revealed how much the iconic piece of New York heritage will sell for.
The building’s ground lease makes $32.5 million annually for its owners, the Cooper Union School. In 2008, the Abu Dhabi Government purchased a majority stake in the building, which kept Tishman Speyer, a real estate developing group, as minority owner. Cooper Union has escalated their annual fee upwards of $7.75 million in the past two-years, and plan for more increases in the coming years.
The Wall Street Journal reported that the Abu Dhabi Investment Council, an arm of the Gulf emirate government, wants to get a return on their $800 million investment for their 90% stake. Abu Dhabi will struggle to recoup their investment due to the current commercial sales market. The Chrysler Building is competing with new spaces that do not require a high cost renovation, continued upkeep, and escalating fees for the ground lease.
As an iconic part of the NYC skyline and history, The Chrysler Building has endless possibilities. So what might a potential buyer do? Convert to a hotel? Build a vertical college campus? Reopen the Cloud Club Bar? We’ll have to wait and see.