A recent ruling by a New York judge has ordered Chrysler Building tenants to pay their rent to Cooper Union instead of the real estate company that owns the leasehold. This decision also instructed Aby Rosen, the mogul behind the real estate firm RFR, to stay out of Cooper Union’s management of the iconic Art-Deco tower.
The injunction comes as a blow to Rosen, who had sued Cooper Union after receiving an eviction notice on September 27. Rosen argued that the eviction notice was flawed and claimed that Cooper Union did not follow the proper procedure. However, Judge Jennifer Schechter dismissed Rosen’s defense as “flimsy.”
Cooper Union Vice President John Ruth stated that the court agreed that the termination of the lease was justified, especially considering that Rosen and his partners owed $21 million in back rent. RFR had acquired the long-term leasehold on the Chrysler Building in 2018 for $151 million in partnership with Austrian real estate company Signa.
Rosen attempted to renegotiate the lease terms with Cooper Union, but negotiations were complicated when Signa faced insolvency in November. This led to a contentious situation where both parties instructed office and retail tenants to pay rent to them instead of the other.
In response, Rosen sued Cooper Union for $100 million in damages, citing the departure of office tenants due to alleged harassment of Jewish students following a terrorist attack by Hamas. However, the judge emphasized that a landlord’s actions at another property do not affect a tenant’s rent obligations.
Despite the setback, an RFR spokesperson described their removal from the building as “temporary.” The spokesperson highlighted RFR’s contributions to the Chrysler Building, including a significant restoration project, and expressed concerns about the building’s financial stability and historical significance without RFR’s leadership.
It remains unclear whether Rosen will appeal the ruling. The ongoing legal battle between Rosen and Cooper Union underscores the complex dynamics surrounding the iconic Chrysler Building and its ownership.
