Talena Sanders | Flickr | Getty Images
The Chrysler Building is one of the landmarks of the Manhattan skyline. Located on 42nd Street and Lexington Avenue, it is the city's third tallest building and a high tribute to both the Chrysler Corporation and the city it calls home. The Art Deco building has had two foreign owners in the last 11 years. TNW, a German investment group, bought a 75 percent stake in the building for 2001. Seven years later, Abu Dhabi bought the investment council there and now owns the building.
Signa Holding GmbH, Austria's largest privately owned real estate company, will purchase the iconic Chrysler building in New York City in partnership with the real estate company RFR Holding LLC for about $ 150 million. People familiar with the case told Reuters.
Signa and RFR are equal partners in a joint venture that signed a deal on Friday to buy the Abu Dhabi investment advice building at a fraction of what it paid to own it, the sources said.
Abu Dhabi had spat out $ 800 million to own a 90 percent stake in the Chrysler building on the outbreak of the 2008 financial crisis. The property values crashed later and in some cases never fully recovered.
The sources did not request to be identified as not authorized to speak publicly. Signa Holding and CBRE, who have handled the sales process of the asset, refused to comment. RFR did not immediately respond to a request for comment.
The art-deco tower, which was the world's tallest building when completed in 1930, only to be obscured by the New York Empire State Building, is considered a crown jewel of the city's skyline. Older age is maintenance costs, and its historical status has often made changes in the needs of tenants difficult.
The road at the selling price was the rent that the Chrysler building had to pay to the Cooper Union School because it did not own the land under the property. The annual rent increased to $ 32.5 million in 2018 from $ 775 million in 2017. The lease agreement increases to $ 41 million in 2028, according to Cooper Union accounts.
The agreement marks Signa's debut in the US real estate industry. Led by founder René Benko, Signa has a comprehensive property and retail portfolio in Europe. The real estate portfolio is worth more than EUR 14 billion (EUR 16 billion), while the development projects have a gross asset value of over EUR 8 billion, according to the website.
Signa is no stranger to investing in many landmarks in prime locations. Its holdings include the KaDeWe and the Upper West Tower in Berlin, the Goldenes Quarter with the Park Hyatt Hotel in Vienna, the Alte Academy in Munich, and the Alsterhaus and the Alsterarkaden in Hamburg.
Founded in 1991 by Aby Rosen and Michael Fuchs, RFR made its name in real estate by owning and managing some of Manhattan's most prestigious office properties, including the Seagram Building and Lever House, located on Park Avenue.
Signa and RFR have made deals earlier, including in 2017, when Signa agreed to buy five landmark features from RFR in Berlin, Hamburg, Frankfurt and Munich for around 1.5 billion euros.
Real Deal had previously reported RFR's role in the Chrysler Building deal.