Legal battles and a crumbling empire have thrown the ownership of a prestigious Manhattan skyscraper into uncertainty.
The Chrysler Building in Manhattan is facing a potential eviction threat due to financial difficulties faced by one of its owners, Signa Holding. Signa Holding, led by René Benko, partnered with RFR Holding, a New York company, to purchase the iconic building in 2019 for $151 million with plans to restore its former glory.
However, the owners did not own the land beneath the building but instead entered into a ground lease with the landowner, Cooper Union for the Advancement of Science and Art. This lease required the owners to pay rent to Cooper Union, which uses the income to support student tuition. According to documents reviewed by The New York Times, Cooper Union has alleged that the owners are behind on rent payments and have decided to terminate the ground lease, taking control of the building.
In response, the owners have filed a lawsuit in New York State Court to prevent the eviction. Signa Holding has referred all inquiries to RFR Holding, which has declined to comment on the situation. The complex relationship between the landlords and tenants in this case highlights the challenges that can arise in real estate deals involving ground leases in New York City.
Source: The NY Times
