News Summary
The Chrysler Building in New York City is now under Cooper Union’s control after RFR Realty defaulted on a $21 million rent payment. Cooper Union terminated RFR’s lease following unpaid dues since May 2023, leading to the appointment of Cushman & Wakefield as the new management company. RFR acquired the lease in 2019 for $151 million but faced skyrocketing ground rent and high vacancy rates. As Cooper Union takes over, the implications for the building’s future and tenant relations in the post-pandemic landscape remain to be seen.
New York City
The Chrysler Building, an iconic landmark in New York City, is now under the control of The Cooper Union for the Advancement of Science and Art after developer RFR Realty defaulted on a massive rent payment of $21 million. Cooper Union terminated RFR’s lease following the company’s failure to make rent payments since May 2023.
On September 13, Cooper Union issued a lease termination notice to RFR, which had managed the Chrysler Building since acquiring a ground lease in 2019. RFR’s inability to meet their financial obligations has prompted Cooper Union to take direct control of the property, leading to significant changes in management.
To facilitate a smooth transition and protect the interests of current tenants, Cooper Union appointed Cushman & Wakefield as the new management company for the Chrysler Building. This decision is aimed at maintaining operations and ensuring continuity for the building’s tenants as ownership shifts back to Cooper Union.
RFR Realty took control of the ground lease for the Chrysler Building for $151 million in 2019, marking a significant investment in the historic property. However, the terms of the lease changed dramatically shortly after RFR’s acquisition; the ground rent rose from $20.1 million in 2018 to $32.5 million for the years 2019 through 2027, with expectations for further increases to $41 million starting in 2028.
Throughout the COVID-19 pandemic, RFR invested over $150 million in property maintenance and support for tenants. Despite these efforts, the building’s vacancy rate soared to 38% in the first quarter of 2022. As of recently, the vacancy rate has improved significantly to 14.3%, indicating some recovery in occupancy.
The Chrysler Building remains home to several major tenants, including IWG’s Spaces, which occupies 125,000 square feet, followed by firms such as Moses Singer and the Creative Artists Agency. The current market asking rent for office space in the Chrysler Building stands at approximately $77 per square foot, a stark contrast to the higher asking price of $217 per square foot at One Vanderbilt.
In response to the termination of their lease, RFR claims that Cooper Union’s actions are improper. The company has stated that they have made multiple attempts to negotiate modifications to the ground lease terms to avoid eviction.
The Chrysler Building, completed in 1930, has been a significant part of New York City’s skyline and history, earning its designation as a New York City landmark in 1978. The building’s distinctive art deco architecture and its history have made it a point of interest not just for its tenants, but also for tourists and locals alike.
As the situation develops, the implications of Cooper Union’s control over the Chrysler Building could have lasting effects on the real estate landscape of this sought-after location in New York City, along with the ongoing dynamics between commercial property management and tenant relations in a post-pandemic context.
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Additional Resources
- Crain’s New York: NYC Deals of the Day – June 6, 2025
- Wikipedia: Chrysler Building
- Commercial Observer: No Standing NYC Store – West Houston Street
- Google Search: Chrysler Building real estate
- New York Times: CityFHEPS Housing Vouchers Audit
- Google Scholar: Chrysler Building NYC
- YieldPro: The Reserve at Estuary
- Encyclopedia Britannica: New York City real estate
