Tishman Speyer has acquired the Chrysler Building, the iconic Art Deco skyscraper in Manhattan, for $235 million, announcing plans for a significant interior renovation. The deal marks a culmination of more than a year of uncertainty following financial struggles by previous owners, who faced criticism for inadequate maintenance and rising vacancy rates.

The 1,046-foot tower, designed by William Van Alen and once the world’s tallest building, has hosted notable tenants including Western Union and the Chrysler Corporation, which maintained its headquarters there for two decades. The land beneath the building is owned by Cooper Union, and Tishman Speyer will continue to pay rent under a 150-year ground lease agreement.

Rob Speyer, CEO of Tishman Speyer, emphasized the firm’s intention to restore the building’s offices and common areas, while modernizing infrastructure such as elevators and restoring the stainless steel crown. “This is a building that every New Yorker feels like they own,” Speyer said, underscoring the cultural and architectural significance of the property.

This purchase represents a return for Tishman Speyer, which previously acquired the Chrysler Building in 1997 along with partners for $220 million. The company renovated many of its Art Deco features, including the Edward Trumbull mural in the lobby ceiling, before selling the majority stake in 2008 to Abu Dhabi’s investment fund for $800 million. The building was later bought in 2019 by Austria’s Signa and New York firm RFR for approximately $150 million, reflecting higher ground lease costs imposed by Cooper Union and increased competition from newer office towers.

Signa filed for insolvency in 2023, leading to the forced sale of its share, while RFR fell behind on lease payments, resulting in a court-ordered termination of its lease last year. Speyer noted that Tishman Speyer had negotiated a “new deal” with Cooper Union but declined to provide details. Cooper Union has relied on lease income from the Chrysler Building to fund its sizable financial aid programs, including full-tuition scholarships for all undergraduates. Steven W. McLaughlin, Cooper Union’s president, highlighted the importance of the agreement for student support.

Planned upgrades include converting the 61st floor—known for its stainless steel eagle gargoyles overlooking the city—into a tenant clubhouse featuring food, beverages, and an outdoor terrace. The company also intends to introduce wellness amenities, including fitness services, in the arcade beneath the lobby.

The approach mirrors Tishman Speyer’s previous renovations at 30 Rockefeller Plaza, acquired in 2000 for $1.85 billion, where the firm revitalized office space, public areas, and retail offerings, enhancing the property’s appeal.

Demand for Manhattan office space has surged in recent months, bolstered by the expansion of artificial intelligence companies and enduring leases by financial institutions such as American Express. According to investment firm Colliers, leasing activity in the first half of the year reached its highest level since 2002. With new office construction limited and costs on the rise, refurbishing landmark buildings like the Chrysler Building has become an increasingly attractive strategy for landlords, Speyer said.