Chrysler Building Sells For Massive Loss, Reports Say

MIDTOWN MANHATTAN, NY — The marketplace for Art Deco masterwork skyscrapers in New York City is at a low point. Midtown Manhattan's Chrysler Building, one of the most celebrated towers in New York City, is selling for a massive loss, according to reports.

German-born investor Aby Rosen's firm RFR Holdings has reached a deal with Tishman Speyer and an Abu Dhabi government fund to buy the Lexington Avenue skyscraper for $150 million, real estate publication the Real Deal first reported. The sale represents a huge loss for the sellers, which bought a controlling stake in the tower for $800 million in 2008.

While $150 million is an enormous sum of money, the deal represents a bargain for Rosen —especially when compared to some of the more outrageous real estate deals cut in New York. Billionaire hedge funder Ken Griffin's purchase of a $238 million penthouse in the 220 Central Park South has city politicians calling for a Pied-a-Terre tax.

The aging skyscraper's troublesome ground lease is likely the reason for its underwhelming performance on the sales market, the Real Deal reported. The Chrysler Building's owners are required to pay landowner Cooper Union $32.5 million and the rent will increase to $41 million in 2028, the Real Deal reported.

Meanwhile, rents at the Chrysler Building are not matching the rising cost of the ground lease, according to the report.

The Chrysler Building stands 1,046-feet-tall on the corner of East 42nd Street and Lexington Avenue. The landmarked tower was completed in 1930 and stood as the world's tallest building for just under a year until the completion of the nearby Empire State Building. The 77-story building is often counted among New York City's most impressive architectural marvels and an icon of the Art Deco style.

Read the full Real Deal report here.