United States. The Chrysler building has been sold for a much lower value than what was acquired by its owners, the Emirati investment firm Mubadala and the real estate group Tishman Speyer, in 2008.
The 77-story building was sold for $150 million to New York real estate investor Aby Rosen's RFR fund and an unidentified "foreign partner" when it was acquired in 2008 for $800 million.
The high maintenance values of the building were one of the main reasons for sale, largely because the land on which it stands is owned by the Cooper Union school, which in 2018 charged a rent of US $ 32.5 million and expects that in 2028 the figure will reach US $ 41 million. The tower also has a high number of unrented or soon-to-be-empty spaces, so new owners will likely have to invest to attract new tenants, according to the Journal.
This sale comes at a difficult time for real estate in New York in general, and Manhattan in particular. The Hudson Yards neighborhood on Manhattan's west coast will soon have more than 1.6 million square meters of new offices and housing, further increasing downward pressure on older buildings.
In 1997, Tishman Speyer negotiated a long-term lease until 2147 with the faculty, which stipulated that rent increase from $7.8 million to $32.5 million per year from 2019 to 2027, according to documents consulted by AFP. The value of the land alone was estimated at $679 million at the end of 2017.
Image: Wikipedia.
