Tishman Speyer, joined by PSP Investments and Other Institutional Partners, to Restore and Transform New York City's Most Beloved Architectural Icon into a World-Class Boutique Office Environment
Tishman Speyer and The Cooper Union for the Advancement of Science and Art today announced they have finalized a ground lease agreement for the Chrysler Building, a New York City icon and one of the most recognizable buildings in the world.
Chrysler Building
As the holder of a 150-year ground lease, which includes an investment of $235 million and ground lease payments to Cooper Union, Tishman Speyer will restore the landmark 77-story Grand Central office tower located at 405 Lexington Avenue. Tishman Speyer is joined in the transaction by multiple global institutional investors with the Public Sector Pension Investment Board (PSP Investments) as a lead investor.
"We are pursuing an ambitious plan for the Chrysler Building at a historically strong moment for the Manhattan office market," said Tishman Speyer CEO Rob Speyer. "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."
The Cooper Union – a distinguished, private college founded by inventor, industrialist and philanthropist Peter Cooper in 1859 – has owned the land on which the Chrysler Building was built since it was granted to the institution by Cooper's children in 1902. The land is intended to serve as a permanent source of financial support for the school's mission. The long-term ground lease to Tishman Speyer comes as the college is in the midst of a bold plan to restore full-tuition scholarships for all undergraduates.
"The significance of this agreement is ultimately about what it makes possible for generations of Cooper Union students," said Steven W. McLaughlin, president of The Cooper Union. "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."
"This was a singular opportunity to identify the best partner for the long-term stewardship of an extraordinary New York City landmark and for The Cooper Union as we work to advance and sustain full-tuition scholarships for all undergraduates," said Cooper Union Vice President of Finance & Administration John Ruth. "Our leadership team and board of trustees, informed by expert advisors, conducted a deliberate, strategic, and thorough process, and there was great interest in the property as evidenced by the competitive proposals we reviewed and considered. Tishman Speyer emerged as the clear leader. We are confident that the Tishman Speyer team is the right team and understands the significance of this ground lease to the city and to the mission of The Cooper Union."
The Cooper Union was advised in this matter by Steve Klein, partner, Gibson Dunn and David Heller, vice chairman, Capital Markets Group, Savills North America.
Tishman Speyer will undertake an extensive building improvement and hospitality program, which will breathe new life into the 1.3 million-square-foot tower. The investment aims to reposition the Chrysler Building as Manhattan's most distinctive new boutique office building, pairing one of the world's most iconic addresses with a workplace experience designed for today's customers. Tishman Speyer and its partners will deploy 100 percent equity to finance the ground lease and its redevelopment plan.
As a long-term investor in real estate, PSP Investments is partnering with Tishman Speyer and other institutional investors to support the repositioning of one of New York City's most iconic office buildings.
"This transaction reflects our deliberate investment strategy in prime office: acquiring high-quality assets in the strongest locations and executing a clear business plan alongside a proven global partner," said Simon Marc, Senior Vice President and Global Head of Private Equity and Real Estate Investments at PSP Investments. "The Chrysler Building is one of the world's most renowned landmarks, directly connected to Grand Central, and we are proud to be part of its transformation."
Today, the Grand Central submarket has one of the lowest office availability rates in Manhattan. Construction of new office supply in the neighborhood has been virtually nonexistent for decades. With premier towers at or near full occupancy and limited new supply in the pipeline, the Chrysler Building enters a market with few alternatives for companies seeking a high-quality, amenity-filled environment directly above Grand Central Terminal.
Tishman Speyer will reserve the Chrysler Building's 61st floor – renowned for its massive eagle gargoyles modeled after the hood ornament on the 1929 Plymouth – for an incomparable indoor-outdoor amenity program. The floor will feature an upscale lounge with outdoor access boasting spectacular views, premium food and beverage offerings and gathering space. A second amenity program, featuring fitness, wellness and meeting spaces, will be situated within the Chrysler Building's underground arcade.
To create a distinct competitive advantage, Tishman Speyer will prebuild 75 percent of the Chrysler Building's current and upcoming vacancy with thoughtfully designed, ready-to-occupy suites. The prebuild approach, which Tishman Speyer successfully applied to its neighboring 6 Grand Central tower, allows for customers – particularly smaller users – to move in quickly and demonstrate to the market what it will be like to work at the Chrysler Building, which was built for the future and will once again become a vibrant, market-leading workspace.
The transformation will also include restoration of the building's façade and polishing and renewal of its distinctive crown. Within the building, Tishman Speyer will modernize the mechanical, elevator, electrical, and air handling systems, and optimize the cooling towers for energy efficiency.
Originally built to house the Chrysler Corporation, the William Van Alen-designed building features decorative elements inspired by automobile parts and once held a car showroom in the lobby. The Chrysler Corporation was headquartered in the building for more than two decades. At 1,046 feet, the tower held the distinction as the world's tallest when it opened in 1930. Located on Lexington Avenue between 42nd and 43rd Streets, the tower features direct access to Grand Central Terminal.
For generations, the Chrysler Building has been a fixture in popular culture, figuring prominently in a wide variety of movies over the years, including "Avengers," "Spiderman," "Men in Black 3," "Sorcerer's Apprentice" and "The Wiz." For New Yorkers and visitors alike, the Chrysler Building represents ambition, optimism, and innovation. With the investment by Tishman Speyer and its partners, and under their stewardship, the building will continue to inspire and remain a world-class workplace for future generations.
Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in approximately 40 key markets across the United States, Europe, Asia and Latin America. Our portfolio spans market rate and affordable residential communities, premier office properties and retail spaces, industrial and data center facilities, mixed-use campuses, and real estate credit investments. We create state-of-the-art life science centers through our Breakthrough Properties joint venture, and foster innovation through our strategic proptech investments. With global vision, on-the-ground expertise and a personalized approach, we foster innovation, quickly adapt to global and local trends and proactively anticipate our customers' evolving needs. By embedding health and wellness, enlightened placemaking and customer-focused initiatives such as our tenant amenities platform, ZO, and our flexible space and co-working brand, Studio, into our buildings, we enhance the experience of the people who work and live there. Since our inception in 1978, Tishman Speyer has acquired, developed, and operated 594 properties, totaling 240 million square feet, with a combined value of approximately $137 billion (U.S.). Our current portfolio includes such iconic assets as Rockefeller Center in New York City, The Springs in Shanghai, TaunusTurm in Frankfurt, and the Mission Rock neighborhood currently being realized in San Francisco.
About Cooper Union
The Cooper Union for the Advancement of Science and Art is a world-class private college of art, architecture, and engineering with a faculty of humanities and social sciences. Founded in 1859 by inventor, industrialist, and philanthropist Peter Cooper, the college is dedicated to his founding vision that fair access to an inspiring free education and forums for courageous public discourse foster a just and thriving world. With a student body of more than 900 undergraduate and graduate students, The Cooper Union's curriculum focuses on helping students acquire technical mastery and entrepreneurial skills, enrich their intellects and spark their creativity, and become inspired to address the critical challenges and opportunities of their time. The institution affords students from all walks of life the opportunity to engage with a distinguished, creative faculty and fosters rigorous, humanistic learning that is enhanced by the process of design and augmented by its urban setting in New York's East Village. For more information, visit www.cooper.edu.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with C$320.6 billion of net assets under management as of March 31, 2026. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong.
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