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2019-03-09 — cnn.com

The Chrysler Building, the famous art deco New York skyscraper, will be sold for a small fraction of its previous sales price. The deal, first reported by The Real Deal, was for $150 million, according to a source familiar with the deal.

Mubadala, an Abu Dhabi investment fund, purchased 90% of the building for $800 million in 2008. Real estate firm Tishman Speyer had owned the other 10%.

The buyer is RFR Holding, a New York real estate company. Officials with Tishman and RFR did not immediately respond to a request for comments.

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The incentive to sell the building at such a huge loss was due to the soaring rent the owners pay to Cooper Union, a New York college, for the land under the building. The rent is rising from $7.75 million last year to $32.5 million this year to $41 million in 2028.

Meantime, rents in the building itself are not rising nearly that fast. While the building is an iconic landmark in the New York skyline, it is competing against newer office towers with large floor-to-ceiling windows and all the modern amenities.

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