Chrysler Building Hits the Market as Cooper Union Aims to Boost Income

Cooper Union has listed the iconic Chrysler Building for the first time in nearly a decade, partnering with Savills to seek a new buyer while retaining ownership of the land.

Jordan B.
May 19, 2025

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Good morning. Cooper Union has enlisted Savills to sell the iconic Chrysler Building for the first time in nearly a decade, aiming to boost income while retaining ownership of the land beneath it.

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ON THE MARKET

Chrysler Building On the Market as Its Landowner Seeks to Boost Income

Cooper Union has listed the iconic Chrysler Building for the first time in nearly a decade, partnering with Savills to seek a new buyer while retaining ownership of the land.

Why sell now? Cooper Union is listing the historic skyscraper after a lengthy legal battle to reclaim control from RFR Holding, which defaulted on rising ground rent obligations. Payments reached $32 million annually and are projected to increase to $41 million by 2028, prompting the nonprofit to seek new revenue opportunities.

Financial strain: Despite high-profile tenants like Moses & Singer, Creative Artists Agency, and architect Ted Moudis, the building’s rental income consistently fails to cover costs. With a 15% vacancy in its 1.2 million-square-foot structure, the property struggles to compete with newer Midtown towers like One Vanderbilt, where office rents exceed $300 per square foot—three times what the Chrysler Building commands.

Tax perks: Cooper Union enjoys a tax-free arrangement with the city, receiving tax equivalency payments (TEP) instead. However, falling rental income has lowered both the building’s value and TEP payments, prompting potential future leases to require upfront cash and clearer renovation plans.

➥ THE TAKEAWAY

What’s next? The Chrysler Building's vintage charm and global prestige make it a rare gem in need of bold reimagining—an opportunity for visionary developers with deep pockets to breathe new life into one of New York City’s most iconic landmarks.

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✍️ Editor’s Picks

Iconic sale: Cooper Union has enlisted Savills to sell the iconic Chrysler Building for the first time in nearly a decade, aiming to boost income while retaining ownership of the land beneath it.
Manage smarter: Find the best property management software to help you streamline operations and simplify leasing and maintenance with ease. (sponsored)
Lower yields: Eased bank regulations may drive demand for 10-year Treasuries and lower interest rates, impacting debt markets and CRE lending
Stalemate: The House's new tax bill leaves carried interest tax treatment unchanged, but the Senate may still revisit the issue as part of its own version of the legislation.
Fed framework: Jerome Powell signaled changes to the Fed's rate-setting strategy, reflecting lessons from post-2020 inflation.
Consumer sentiment: U.S. consumer sentiment dropped to its second-lowest level on record in May, driven by inflation fears linked to tariffs, despite a recent pause in U.S.-China trade levies.

🏘️ MULTIFAMILY

Proposed Bill: LIHTC reform in a new federal bill could add 500K affordable housing units despite potential HUD and rental aid cuts.
Proptech play: Blackstone is investing $200M in Utah-based Entrata to help the firm expand its multifamily property management platform.
Positive outlook: UDR CEO Tom Toomey anticipates stronger rent growth ahead, citing a declining pipeline of new multifamily projects as a key driver.

🏭 Industrial

Big bet: Norway's sovereign wealth fund is investing $800M in Blackstone's core-plus logistics fund, strengthening its stake in North American industrial real estate.
Global expansion: Equinix launched its first data center in Jakarta, JK1, through a joint venture with Astra International, offering 550 cabinets initially and expanding to 1,600, powered by renewable energy credits.

🏬 RETAIL

Fully leased: Lombardi Properties and Fox Farm Capital have sold Grand Bay Plaza, a fully leased grocery-anchored shopping center in Fort Myers, Fla., through JLL Capital Markets.
Major expansion: EDENS acquired the 108,623-square-foot Weston Road Shopping Center in Davie, Florida, for $51.3M, adding to its growing South Florida retail portfolio despite the recent loss of its anchor tenant.

🏢 OFFICE

Signs of life: Top landlords like BXP, Hudson Pacific, and Vornado report strong Q1 2025 leasing demand, with Class A offices thriving despite economic challenges, while lower-tier properties continue to struggle.
Crypto comeback: Coinbase is planning to lease 150,000 square feet at Mission Rock Building B in San Francisco, marking a return to physical office space after years of operating remotely.