Austrian real estate company Signa Holding GmbH has secured a $150 million agreement to acquire New York’s Chrysler Building through a joint venture with RFR Holding LLC, according to individuals familiar with the transaction.
The deal involves an equal partnership between Signa and RFR, who signed a purchase agreement to buy the iconic Art Deco tower from the Abu Dhabi Investment Council. The price represents a significant discount from the $800 million Abu Dhabi paid for a 90% stake in 2008, during the global financial crisis.
The building’s ownership structure complicates its valuation. While the Chrysler Building’s lease with Cooper Union increased annual rent to $32.5 million in 2018—up from $7.75 million in 2017—the lease term will raise payments to $41 million by 2028, according to financial records.
Signa, founded in 1991, expands its global portfolio with this U.S. acquisition. The firm, led by Rend Benkoe, manages over 14 billion euros in real estate assets across Europe. RFR, established in 1991, has previously collaborated with Signa on European property deals, including a 2017 transaction involving Berlin, Hamburg, Frankfurt, and Munich landmarks.
The Chrysler Building, completed in 1930, was briefly the world’s tallest structure before being surpassed by the Empire State Building. Its historical status and aging infrastructure pose ongoing maintenance challenges for owners.
