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Tishman Speyer bought a Chrysler Building ground lease in 1997

Reported · Written up by our desk · Industry

Commercial Observer reports that in 1997, Tishman Speyer acquired the Chrysler Building through a ground lease arrangement. The property’s site was owned by Cooper Union, and the ground lease terms were set to become more expensive over time.

The outlet says Tishman Speyer later sold a 90 percent interest in the building to the Abu Dhabi Investment Council in 2008 for $800 million. When the property was put up for sale again in 2019, expectations were tempered because annual payments to Cooper Union had risen from $7.8 million per year to $32.5 million.

Commercial Observer adds that while market observers still expected the iconic, centrally located Chrysler Building to fetch at least $500 million, that valuation view shifted after factoring in the ground rent and that the property required major updates and repairs.

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