The real estate firm Tishman Speyer is taking over the management of the landmarked Chrysler Building with plans for extensive renovation after signing a long-term ground lease. The Cooper Union for the Advancement of Science and Art, the private college and owner of the land beneath the tower, finalised an agreement worth US$235 million with Tishman Speyer. The contract has a term of 150 years, as confirmed by The New York Times on Tuesday evening.
The Cooper Union has owned the land since 1901. In November 2024, RFR Holding, led by Aby Rosen and Michael Fuchs, was contractually released after defaulting on US$21 million in ground rent payments. This paved the way for the new agreement with Tishman Speyer.
Strategic Repositioning in the Manhattan Office Market
Rob Speyer, CEO of Tishman Speyer, stated that the company is pursuing an ambitious plan for the Chrysler Building at a historically strong time for the Manhattan office market. He emphasised that, similar to new developments such as The Spiral and the ongoing redesign of Rockefeller Center, an environment will be created that makes tenants proud and makes them happy to come to work every day. The Cooper Union was represented in this transaction by Steve Klein, Gibson Dunn, and David Heller of Savills.
The repositioning plans involve converting 75 per cent of the building's current and soon-to-be-vacant spaces into turnkey office suites. This is intended to optimise the re-leasing process in the 77-storey tower. Tishman Speyer is pursuing a similar approach to the one already used at 6 Grand Central. As early as the beginning of 2026, reports circulated about Tishman Speyer's discussions regarding an acquisition of the building, with Speyer keeping details under wraps at the time.
Supporting Education and Investments
The new ground lease agreement will enable Cooper Union, as a private college, to restore full scholarships for all undergraduate students, in line with its founding mission. Steven McLaughlin, President of Cooper Union, stressed that the Chrysler Building has contributed for over a century to upholding Peter Cooper's vision of access to education by removing financial barriers. He highlighted the responsibility to uphold this promise, build upon it, and strengthen Cooper Union for future generations. This agreement is part of an integrated financial plan that provides the framework to pursue this goal.
- —Transaction value of the ground lease: US$235 million.
- —Term of the contract: 150 years.
- —Proportion of converted spaces: 75 per cent of vacancies.
- —Investor involved: Canada’s Public Sector Pension Investment Board.
Canada’s Public Sector Pension Investment Board is participating as an investor in the repositioning efforts and is significantly supporting Tishman Speyer in this endeavour. This comprehensive revitalisation is intended to equip the historic landmark for the demands of a modern office market while simultaneously safeguarding the continuation of Cooper Union's educational mission.
