Tishman Speyer Reacquires Chrysler Building Ground Lease, Plans $235M Renovation

Tishman Speyer has secured a 150-year ground lease for the historic Chrysler Building in Manhattan, agreeing to pay $235M plus future ground lease payments to Cooper Union, which owns the land. The global real estate firm, supported by institutional investors including the Public Sector Pension Investment Board, plans a significant repositioning of the 77-story, 1.3M SF landmark at 405 Lexington Ave. The project, funded entirely by equity, aims to transform the property into a boutique office tower.

This acquisition marks Tishman Speyer's return to the asset, which it previously managed. The building had faced deterioration and high vacancy rates under previous ownership, RFR and Signa Holding GmbH, leading to eviction proceedings initiated by Cooper Union in September 2024. Renovation plans include converting 75% of vacant space into prebuilt office suites, creating a 61st-floor amenity space with an outdoor terrace, and adding wellness services below the lobby. The building's classic exterior, including its signature crown, will also be refreshed.

The move comes amid a robust Manhattan office market, with the Grand Central submarket, where the Chrysler Building is located, reporting the highest direct asking rents in the third quarter at $113.45 per SF. This substantial investment underscores confidence in the demand for premium office space and signals a new chapter for one of New York City's most recognizable skyscrapers.