Real estate firm Tishman Speyer has finalized a 150-year ground lease for the ultra-recognizable, 77-story Chrysler Building, located at 405 Lexington Ave.,  which includes a $235 million investment and ground lease payments to The Cooper Union for the Advancement of Science and Art. The transaction will pay for renovations that will transform the iconic skyscraper into a “modern boutique office building.”

The deal will help Cooper Union, a private honors college in the East Village, return to its full-tuition scholarship program for all of its undergraduate students. 

“We are pursuing an ambitious plan for the Chrysler Building at a historically strong moment for the Manhattan office market,” Tishman Speyer CEO Rob Speyer said. “We are thrilled to lead this beloved building’s next chapter. Just as we have done through new developments like The Spiral and our continuous reinvention of Rockefeller Center, we will create an environment that will make our customers proud and excited to work here every day.”

Cooper Union has owned the land beneath the Chrysler Building since 1902, when it was given to the school by the children of founder Peter Cooper. The land has served as a long-term source of financial support for the college. 

Under the agreement, Tishman Speyer will make ground lease payments to Cooper Union while leading the building’s redevelopment alongside several global institutional investors, including the Public Sector Pension Investment Board. 

“The significance of this agreement is ultimately about what it makes possible for generations of Cooper Union students,” said Steven McLaughlin, president of The Cooper Union. 

Additionally, a spokesperson for the school said, “Arriving at this agreement is significant for Cooper. It is a positive step toward keeping our Plan to Return to Full-Tuition Scholarships for undergraduates on track, although it is not, on its own, the total solution. Rather, it is part of an integrated financial model that also relies on investment income, well managed expenses, and ongoing fundraising to meet our plan targets for restoring and sustaining full-tuition scholarships in perpetuity.”

Cooper Union historically provided free tuition to its undergraduate students until 2014, when it began charging half-tuition. The new deal has set a goal for again making the school tuition-free by the 2028-2029 academic year.

“For more than a century, the Chrysler Building has helped sustain Peter Cooper’s vision of opening access to education by removing financial barriers. We have a responsibility to be caretakers of that promise, to build upon it, and to leave Cooper stronger for those who come after us. This agreement is part of an integrated financial plan that gives us the framework to confidently pursue that goal.”

A new look for the Chrysler Building

Meanwhile, the renovations of the historic building, which opened in 1930, will include restorations of its facade and distinctive crown, along with upgrades to its mechanical, electrical, elevator and air-handling systems. Cooling towers will also be upgraded for greater energy efficiency.

Real estate reps also said that the building’s famous 61st floor, known for its massive eagle gargoyles modeled after the hood ornament of the 1929 Plymouth, will become an indoor-outdoor amenity area with a lounge, outdoor access, food and beverage offerings and gathering spaces. 

Fitness, wellness and meeting spaces are planned for the building’s underground arcade. 

Reps said the renovation will aim to give the nearly century-old skyscraper a modern workplace while preserving the features that make it a New York icon.