Cooper Union wins feud with Aby Rosen over Chrysler Building but landmarks future remains in limbo
Cooper Union won its battle with Aby Rosen last week when Manhattan Supreme Court Judge Jennifer Schecter booted Rosen from the Chrysler Building’s leasehold.But short of an unlikely legal reversal, the distinguished educational institution is now on its own in bringing the beloved but troubled skyscraper into the 21st Century.The big question is how to do that.
The school and its real estate advisor, Savills, are studying numerous options.“I think we can all agree that operating a Chrysler Building is not the school’s forte,” said Savills Capital Markets Group senior managing director David Heller.“We are evaluating the alternatives” for the future of the landmark, he said.“We understand there’s going to have to be significant capital investment.”Rosen’s RFR held the leasehold since 2019 when it succeeded Tishman Speyer.
Cooper Union moved to oust Rosen over his failure to pay $21 million in ground rent.Rosen counter-sued, blaming the school for “mismanaging” the property, but Schecter rejected his arguments.Rosen theoretically could appeal.“We’ve had no indication yet” of that happening, said Cooper Union’s lawyer Gabriel Herrmann of Gibson Dunn.Rosen’s representative said he had no comment.Whatever Rosen’s failings might have been, he’s an experienced real estate developer with the know-how needed to restore and update a classic property — as he did with the Seagram Building.Without him, Chrysler’s problems remain to be addressed.
They include office floors that are 40% vacant despite its location in the red-hot Grand Central area, awkward floor layouts, and badly aged infrastructure and interior design that don’t cut it for today’s tenants.The woes include limited sunlight, poor cell phone reception, balky elevators and overall decay in the magnificent Art Deco lobby.Finding a different real estate developer to take over the leasehold won’t be easy.The annual ground rent rose from just $7.75 million i...