- Cooper Union finalized a ground lease with Tishman Speyer for the Chrysler Building, ending more than a year of uncertainty about the Midtown landmark’s future.
- Tishman Speyer will invest $235M plus ground lease payments to reposition the 77-story, 1.3M SF tower at 405 Lexington Ave. as a boutique office building.
- The lease supports Cooper Union’s plan to restore full-tuition scholarships, since the school has owned the land since 1902 and relies on it for income.
Cooper Union finalized a ground lease with Tishman Speyer for the Chrysler Building, and Tishman Speyer will put $235 million into the tower, CommercialCafe reported.
The lease ends over a year of doubt about what would happen to the Midtown Manhattan landmark.
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The Plan
Tishman Speyer will invest $235 million to restore the 77-story tower at 405 Lexington Ave. This investment comes on top of its ground lease payments. The company plans to reposition the 1.3 million SF property as a boutique office building.
The renovation will include building upgrades and hospitality features, CommercialCafe reported. Together, these improvements aim to pair an iconic address with a workplace experience suited to today’s tenants.
Cooper Union’s Stake
Cooper Union has held title to the land since 1902. The property remains a long-term source of support for the school, CommercialCafe reported.
The lease comes as the college works to restore full-tuition scholarships for every undergraduate. President Steven W. McLaughlin addressed the agreement in the announcement. As reported by CommercialCafe, he said the lease forms part of a broader financial plan to reach that goal.
Tishman Speyer’s Pitch
CEO Rob Speyer described the project as an ambitious undertaking. According to CommercialCafe, he made the remarks in the announcement as Manhattan’s office market enjoys a historically strong stretch.
He also pointed to The Spiral and Rockefeller Center as examples of the company’s work.
Why It Matters
The lease concludes a sale process that CRE Daily previously tracked as Chrysler Building bidding narrowed. Under the long-term ground lease, Cooper Union retains ownership of the land. Meanwhile, Tishman Speyer will fund the building’s renovation.
The deal also reflects a broader market trend. Manhattan tower sales are surging alongside record leasing activity.
What’s Next
The next milestones are the renovation timeline and leasing strategy. However, Tishman Speyer has not yet announced a schedule, according to CommercialCafe.
