Edited by: TJVNews.com

A legal battle between Cooper Union and Aby Rosen’s RFR Holding over control of the iconic Chrysler Building is intensifying, with Cooper Union seeking a court order to eject RFR from the premises. According to recent report in The Real Deal, the power struggle began when Cooper Union appointed Cushman & Wakefield to manage the building, prompting Rosen’s firm to resist vacating the property. RFR’s refusal to leave led Cooper Union to escalate the matter to court, claiming RFR’s legal actions were a tactic to “re-trade” an existing lease agreement.

RFR responded by suing Cooper Union in late September, contesting the school’s decision to terminate the long-term ground lease that RFR had held on the Chrysler Building since 2019. Cooper Union’s attorneys, in their recent court filing, condemned RFR’s move as a “shameful” attempt to renegotiate a previously settled lease modification. They asserted, “The apparent goal of this gambit is to further [RFR’s] hard-nosed negotiating campaign” to either retain a foothold in the Chrysler Building or force Cooper Union into a more advantageous exit agreement. The Real Deal reported that Cooper Union is now urging the court to dismiss RFR’s lawsuit and transfer control of the skyscraper back to the school.

The dispute traces back to RFR’s acquisition of the Chrysler Building’s ground lease in 2019 for $150 million. This purchase price was strikingly low compared to the $800 million that Abu Dhabi Investment Council had paid in 2008 to acquire a 90% stake in the building. The Real Deal detailed that Rosen quickly realized the landmark structure required more extensive renovations than initially anticipated. When the COVID-19 pandemic further impacted the property market, Rosen sought to revise the terms of the lease with Cooper Union, citing the building’s condition as a primary concern.

The two parties reportedly reached a tentative agreement in May 2023. This modified lease would have reduced RFR’s monthly rent payments in exchange for a one-time lump sum, according to The Real Deal. However, the deal fell apart when Cooper Union claimed that RFR failed to secure the necessary funding to close the transaction. Complicating matters further, RFR’s financial partner in the project, Austria’s Signa Holding, declared bankruptcy in December, hampering RFR’s ability to follow through with its commitments.

Amid the ongoing court battle, RFR has expressed its willingness to negotiate with Cooper Union if the school agrees to what it describes as a “market deal.” A spokesperson for RFR told The Real Deal, “An economically feasible deal has not yet been reached, and we remain ready to move forward and fund the project if Cooper Union agrees to a market deal.” RFR insists it has the plans and capital on standby, but the firm wants assurances that the terms reflect current market realities, given the unique circumstances surrounding the Chrysler Building.

Additionally, RFR asserts that Cooper Union has hindered the property’s operations, alleging that the school’s handling of campus protests last year regarding the Israel-Hamas conflict negatively impacted the Chrysler Building’s tenants, driving some away from the premises. Cooper Union has firmly denied both claims, according to The Real Deal, asserting that it has adhered to all lease terms and that the rent owed remains undisputed from its perspective.

Meanwhile, the ongoing legal tug-of-war has left Chrysler Building tenants caught in the middle, uncertain about where to direct their rental payments. According to The Real Deal, Cooper Union recently sent letters instructing tenants to pay their rent directly to the school rather than RFR. This shift has prompted some tenants to withhold their payments, opting instead to place their rent in escrow until the courts decide the rightful recipient. Two tenants have even filed legal cases, seeking judicial clarification on the matter, underscoring the confusion and tension among occupants as they await a resolution.

Cooper Union’s recent actions, as outlined by The Real Deal, reflect the institution’s efforts to safeguard its financial interests and assert control over the iconic property. For RFR, however, this dispute represents not only a financial struggle but also a potential threat to its role in managing one of New York’s most storied buildings. Both parties are now at an impasse, with Cooper Union pressing for court-mandated control and RFR fighting to retain its leasehold rights.

As the court proceedings unfold, the outcome will likely have lasting implications for the Chrysler Building’s operations, tenant relationships, and management oversight. With both Cooper Union and RFR entrenched in their positions, the iconic Chrysler Building is at the center of a legal storm that may redefine its future in the New York City skyline.