The tussle over one of New York's most iconic landmarks, the Chrysler Building, has reached a decisive end as a New York state judge has ruled against Aby Rosen's real estate firm, RFR Holding, effectively forcing them to vacate the skyscraper. As of a recent hearing, a default on a staggering $21 million in rent and other obligations led to this blow to RFR's portfolio. According to information from Crain's New York, Cooper Union, the building's landlord, successfully argued that RFR had not paid rent in months, culminating in Judge Jennifer Schecter granting the landlord's motion to evict RFR from the historic tower.
Despite various attempts to hold onto the architectural gem, RFR's efforts were in vain as their financial turmoil became too much to swiftly overcome. In a statement obtained by Crain's New York, Cooper Union’s vice president for finance and administration, John Ruth, said, "RFR could never overcome the basic fact that they were in arrears to the tune of $21 million and had not paid rent in months." Ruth further indicated that Cooper Union plans to work closely with Cushman & Wakefield and Savills to take over full management of the property and to focus on improving the tenant experience while also maximizing the building’s value.
The legal entanglements began to unravel when, in September, RFR brought a lawsuit forward in an effort to block Cooper Union from terminating their lease. However, Cooper Union delivered a counterpunch by issuing a default notice in July, which RFR refused to acknowledge. RFR had accused the school at one point of mismanagement and blamed campus protests over the Gaza conflict for driving tenants away and hampering their ability to meet lease obligations, yet these arguments fell flat in court. As reported by The Real Deal, the judge dismissed their claims, leaving RFR without legal ground to continue its operations in the building.
The outcome marks a significant retreat for Rosen, who in 2019, through RFR, had acquired the right to operate the Chrysler Building with ambitious plans to revamp the 1930 constructed skyscraper. The loss adds to RFR's struggles, which include lawsuits from lenders and city agencies for missed loan and tax payments on several of its properties. With their flagship, the Seagram Building, also carrying a heavy financial burden that must be negotiated soon, RFR declined to comment on the eviction. Nevertheless, Cooper Union is ready to turn a new page, with John Ruth quoted from The Real Deal confirming their intent to execute "a long-term plan to improve the tenant experience and maximize the building’s value."
