Tishman Speyer Reclaims Chrysler Building with $235 Million Renovation Plan

One of Manhattan’s most recognizable landmarks has found a new owner with ambitious plans to restore its former glory. Tishman Speyer announced Wednesday that it has signed a 150-year ground lease with The Cooper Union for the historic Chrysler Building, committing $235 million in renovations plus ongoing ground lease payments to revitalize the iconic Art Deco skyscraper.

The transaction marks a dramatic return for the global real estate giant, which previously owned the building from 1997 until selling its stake in 2008. Consequently, this acquisition brings the 77-story tower back into familiar hands after a turbulent period that saw its previous owners fall behind on rent and fail to complete planned improvements.

A Landmark Returns to Stability

“We are pursuing an ambitious plan for the Chrysler Building at a historically strong moment for the Manhattan office market,” said Rob Speyer, CEO of Tishman Speyer. “We are thrilled to lead this beloved building’s next chapter.”

Located between East 42nd and East 43rd Streets, the 1,046-foot-tall tower was designed by architect William Van Alen and completed in 1930. Furthermore, the building briefly held the title of world’s tallest until the Empire State Building opened the following year. As a result, it remains one of the most iconic additions to the New York City skyline.

Tishman Speyer now plans to reposition the property as a 1.3 million square foot boutique office tower, deploying 100% equity toward the project. Moreover, the firm has secured backing from a group of institutional investors, led by the Public Sector Pension Investment Board.

From Boom to Bust and Back Again

The Chrysler Building’s recent history reflects the volatile nature of Manhattan’s commercial real estate market. In 1997, Tishman Speyer and partners purchased the building and several other properties for $220 million. Additionally, the firm undertook extensive restoration work on the tower’s many Art Deco fixtures, including an Edward Trumbull mural that decorates the lobby’s ceiling.

However, during the Great Recession in 2008, Tishman Speyer sold much of its investment to an Abu Dhabi investment fund for $800 million. The firm retained only a 10% stake in the building and relinquished management responsibilities.

In 2019, Signa Holding GmbH and RFR bought the property for just over $150 million. The dramatically discounted price reflected the burden of the very expensive ground lease, which escalated from $7.8 million in 2018 to a high of $32.5 million annually. Consequently, escalating rent payments became the main cause of the building’s deteriorating value in recent years.

A Period of Neglect and Legal Turmoil

The building’s condition deteriorated significantly after the onset of the pandemic. In contrast to its former grandeur, tenants reported cracks in the ceiling and rodents scurrying through the ground-floor retail space by 2024. Furthermore, RFR and Signa stopped paying rent and weren’t able to complete planned renovations to the tower.

The situation reached a crisis point in November 2023 when Signa filed for insolvency. As a result, this inadvertently kicked off a chain of events that would ultimately return the tower to Tishman Speyer’s control. Meanwhile, the previous owners fell behind on more than $21 million in rent owed to Cooper Union.

Cooper Union began eviction proceedings in September 2024, leading to a bitter legal saga. A judge ultimately sided with the university the following January, allowing it to eject RFR from the property. Subsequently, Cushman & Wakefield has been managing the building. The landmark was put back on the market in May 2025 for the first time since 2019.

The Cooper Union Connection

The land beneath the building has been owned by Cooper Union since 1902, when founder Peter Cooper’s children granted the property to the school. Accordingly, the institution has used revenues from the ground lease as permanent financial support for the college.

“For more than a century, the Chrysler Building has helped sustain Peter Cooper’s vision of opening access to education by removing financial barriers,” said Steven W. McLaughlin, president of The Cooper Union. “We have a responsibility to be caretakers of that promise, to build upon it, and to leave Cooper stronger for those who come after us. This agreement is part of an integrated financial plan that gives us the framework to confidently pursue that goal.”

Ambitious Renovation Plans Ahead

Tishman Speyer’s planned extensive building improvements include turning a majority of vacant or soon-to-be-vacant space into prebuilt office suites. About 14% of the building was vacant as of February, according to available data. Moreover, the firm intends to restore the building’s distinctive Art Deco features both inside and out.

The transaction positions Tishman Speyer, which is headquartered in its signature asset Rockefeller Center, as the steward of two of Manhattan’s most iconic properties. Furthermore, the firm’s track record with the Chrysler Building during its previous ownership period demonstrates its capability to manage and restore historic landmarks.

Ultimately, this deal represents the end of a tumultuous period for one of New York City’s most beloved architectural treasures. As a result, the Chrysler Building can now look forward to a new chapter under experienced ownership committed to preserving its legacy while adapting it for modern office tenants.