The Chrysler Buildings ownership is about to change hands. Signa, Austria’s largest private real estate company, has agreed to purchase the Chrysler Building in NYC for $150 million. Signa, has agreed to purchase the building in a partnership with RFR Holding LLC, a Manhattan-based real estate investment firm. The agreement is said to have been signed on Friday, according to Fox Business.
The current owner, a Abu Dhabi government fund, will take a big hit on the sale after paying $800 million for a 90% stake in the building back in 2008. New York developer Tishman Speyer, who currently manages the property, owns the remaining 10% interest. One of the issues facing the Chrysler Building is that it does not own the land that the property sits on. The owners are required to pay a sizeable land lease yearly to the Cooper Union school, who owns the land. The annual land lease just increased to $32.5 million in 2018, from $7.75 million the year prior. This major increase in fees due yearly because of the land lease certainly has effected the market value of the property. The building first opened in 1930 and is in need of significant upgrades to bring it into the 21st century.