Abu Dhabi Fund Puts New York's Iconic Chrysler Building Up For Sale
And though the growing leasing and maintenance costs are certainly a deterrent, classic buildings like the Chrysler Building benefit from at least one distinct advantage: They don't make buildings like they used to.
The Chrysler Building also faces rising costs associated with a ground lease. The land beneath the building is owned by the Cooper Union school. The building’s owners paid the school $7.75 million in rent during 2017, but that annual lease fee jumped to $32.5 million last year. It rises to $41 million in 2028, and there other associated fees along with the lease, according to Cooper Union’s financial documents.
Sill, some property investors say 1930s-era buildings hold a certain appeal, with their distinct architecture and sturdy floor plans. Some tech companies even welcome vintage properties. Google last year paid $2.4 billion for a former warehouse building, known as Chelsea Market, that dates back to the 19th century.
And while whoever buys the building may need to sink hundreds of millions of dollars in to upgrading the building, with oil prices finally inching higher (thanks to Saudi Arabia's recent commitment to more production cutbacks), maybe the fund can find another Middle Eastern buyer to take the Chrysler building off its hands (because, if the recent past is any indication, Chinese investors are buying less US real estate, not more).