January 16, 2019
Chrysler Building Shakes Up #CRE in the Concrete Jungle
What happens when an iconic figure in a city’s skyline (and possibly the world’s most recognizable) ends up on the market? For the Chrysler Building in NYC, it may mean becoming the subject of another Amazon expansion.
Just months after Arlington, Virginia’s victory in the Amazon HQ2 Sweepstakes, word quickly circulated about the possibility of the e-commerce/tech giant leasing a portion of the historic skyscraper – surprise, surprise. The pending deal would allocate Amazon about 10,000 square feet of space.
Amazon’s potential deal wouldn’t exactly grant them majority occupancy in comparison to Chrysler’s total 1.26 million available square feet. Standing 1,046 feet tall, the 77-floor monumental art deco structure was listed for sale earlier this month. It’s up for grabs at an undisclosed price in Manhattan, with real-estate firm CBRE hired to market the listing.
New York’s Chrysler Building is up for sale as the owners of the art-deco edifice can’t keep up with high costs and stiff competition from gleaming new office towers https://t.co/WjKNAxJcCR
— The Wall Street Journal (@WSJ) January 9, 2019
According to an article from The Wall Street Journal, building maintenance, upkeep and hefty fees for leasing the ground beneath may have an impact on the tower’s list price. In 2008, the current building owners Abu Dhabi Investment Council and developer Tishman Speyer purchased a 90% stake of the 1930’s building for $800 million. The land underneath the structure is owned by the Cooper Union School. As of last year, rent price for the land itself hovered at a whopping $32.5 million – and continues to increase.
So, what’s next?
What will become of this vintage gem in the heart of the Big Apple? Will we see WeWork move in on the available space? Or will a portion of the tower transform into residences for the Jeff Bezos’s of the world? We’re waiting to hear how the last decade has impacted the value of the Chrysler Building, as well as the fate of the architectural masterpiece.
Check out theRealDeal’s deal sheet and transaction history for the building.