Chrysler Building Finds New Owner as New York Landmark Gets $235 Million Makeover

Image Credit: Murals

New York’s iconic Chrysler Building is set for a major transformation after real estate giant Tishman Speyer and its investment partners agreed to take control of the landmark under a 150-year ground lease and invest $235 million in its restoration.

The 77-storey Art Deco skyscraper at 405 Lexington Avenue has faced years of financial and ownership difficulties. The latest agreement with Cooper Union, which owns the land beneath the building, is expected to give the property a new financial and commercial direction while preserving one of New York’s most recognisable landmarks.

The building’s recent history has been turbulent. In 2008, Abu Dhabi Investment Council acquired a 90 per cent stake for about $800 million. Just over a decade later, the property was sold for roughly $150 million in 2019, reflecting falling office demand, expensive ground-lease obligations and growing concerns about older commercial buildings.

The situation worsened when one of its owners, Austria’s Signa, collapsed into insolvency. RFR Holding also fell behind on ground-rent payments, leading Cooper Union to terminate the ground lease in 2024 after about $21 million in unpaid rent. A Manhattan judge later upheld the termination, allowing Cooper Union to regain control.

Under the new arrangement, Tishman Speyer plans to modernise the building while retaining its historic character. The redevelopment will include restoration of the famous stainless-steel crown and façade, upgrades to mechanical and elevator systems, and the creation of new office suites and amenities.

Plans also include a new indoor-outdoor lounge and food-and-beverage space on the 61st floor, as well as fitness, wellness and meeting facilities. The aim is to make the approximately 1.3-million-square-foot building more competitive with newer premium offices around Grand Central Terminal.

The investment comes as Manhattan’s office market shows signs of recovery after years of disruption caused by remote working and weak demand. Leasing activity has strengthened, particularly for high-quality buildings offering modern facilities, giving investors greater confidence in premium properties.

Completed in 1930, the Chrysler Building briefly held the title of the world’s tallest building before the Empire State Building surpassed it. Its distinctive Art Deco crown and automobile-inspired design have since made it one of New York’s most recognisable landmarks.

The latest deal gives the historic skyscraper a fresh opportunity after years of falling valuations and ownership uncertainty. For Tishman Speyer, it is a major bet on the future of Manhattan offices, while for Cooper Union, the long-term ground lease provides an important source of income for its educational mission.