Global developer Tishman Speyer is a step closer to adding New York’s iconic Chrysler Building, with its direct transit access to Grand Central Terminal, back to its portfolio.
The firm, whose holdings include Rockefeller Center, has entered exclusive negotiations with the Cooper Union for the Advancement of Science and Art after the school’s board selected Tishman Speyer following multiple rounds of bidding, according to a person familiar with the situation. Cooper Union owns the land beneath the landmarked skyscraper and regained control of the property after a New York court ruled that RFR, which assumed the ground lease in 2019, failed to pay roughly $21 million in ground rent since May 2024.
The move means Cooper Union is no longer entertaining other bids as the two sides work toward finalizing an agreement, the person said.
Tishman Speyer declined to comment to CoStar News. Cooper Union didn’t immediately respond to a request for comment. Bloomberg News earlier reported that Tishman Speyer had emerged as the likely winner.
Cooper Union last year engaged Savills to market the tower, which was completed in 1930.
Developer’s ties go back decades
Tishman Speyer’s history with the Chrysler Building dates back to 1997, when it acquired senior debt tied to a complex anchored by the tower out of foreclosure, before taking title a year later, according to media reports. The firm spent about $100 million by 2001 upgrading the building and surrounding complex and later sold portions of its stake, while retaining a minority interest until RFR acquired the building in 2019.
Originally built as a headquarters for Chrysler Corp., the property was sold by the Chrysler family in 1953 and has since passed through multiple owners. The New York City Landmarks Preservation Commission has described the tower as “a stunning statement in the Art Deco style” by architect William Van Alen that “embodies the romantic essence of the New York City skyscraper.”
Located at 405 Lexington Ave. at East 42nd Street, the 1,046‑foot, 77‑story building briefly held the title of world’s tallest building after its spire — secretly assembled inside the structure — was erected in just 90 minutes to surpass 40 Wall St., before being eclipsed by the Empire State Building. The Chrysler Building once housed an observatory and the private Cloud Club.
“The Chrysler Building still stands proudly in the New York skyline, its gleaming spire and soaring tower capturing the eye and imagination,” the Landmarks Preservation Commission said.
The building has long been a cultural icon, appearing in films including "The Avengers" and "Spider‑Man." Major tenants include flexible workspace provider Spaces, Creative Artists Agency and law firm Moses & Singer.
Nearby demand for office space
Tishman Speyer’s potential return to the Chrysler Building comes as demand for top‑tier new or renovated office space near Grand Central and along Park Avenue’s corporate corridor has been a key driver of Manhattan’s office recovery amid a broader flight‑to‑quality trend. One block west, SL Green’s One Vanderbilt has routinely commanded some of the city’s highest office rents.
Leasing volume in the Grand Central office cluster continues to run at or near pre‑pandemic levels, outperforming the broader metro area in part as proximity to transit remains highly valued, according to a CoStar analysis.
That said, repositioning the Chrysler Building for modern office tenants could be challenging. The tower’s relatively small floor plates with numerous columns are features that many of today’s large corporate occupiers tend to view as less desirable, industry professionals have said.