Chrysler Building Update

Dear Cooper Union Community,
 
Today, we are pleased to share an important milestone for The Cooper Union and for a very special asset entrusted to our care.
 
The Cooper Union has finalized a ground lease agreement with Tishman Speyer and its partner, PSP Investments, for the Chrysler Building. The agreement includes a $235 million investment as well as annual ground lease payments to Cooper Union. As part of the agreement, Tishman Speyer will undertake a significant revitalization of the Chrysler Building, including ongoing capital investment, positioning one of the world’s most recognizable buildings and a New York City icon for a strong and sustainable future. For details on the building plans, please see the joint press release issued today.
 
Arriving at this conclusion is significant for Cooper. The agreement 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. 
 
When the previous ground lease ended in late 2024, we set about determining the future of this property with extraordinary care, knowing the decisions would have implications for generations of Cooper students. For approximately two years, Cooper Union’s Board of Trustees and administration, supported by leading real estate and legal advisors, including one of the best ground lease attorneys in the country, undertook a rigorous process to consider the full range of possibilities for the property. Cooper was advised in this matter by ground lease legal expert Steven Klein, partner at Gibson Dunn, and David Heller, vice chairman, Capital Markets Group, Savills North America. 
 
The property was marketed widely, and Cooper received strong interest, including 16 full proposals. In fact, Steve Klein shared that this was one of the most active bidding processes in which he’s participated. The proposals were carefully evaluated through financial modeling, market analysis, scenario planning, due diligence, meetings with potential partners, and extensive negotiations. Throughout, we asked a fundamental question: Which path would best protect Cooper Union’s long-term interests and ensure that the Chrysler Building is responsibly stewarded for the future?
 
That question and a very deliberate negotiation process allowed us to explore a variety of options for the building’s use and build in caveats to the ground lease agreement that can further benefit Cooper in the event that the building over performs as well as protect Cooper if it underperforms. That process gave the Board confidence in both the agreement we reached and the partners we selected. Tishman Speyer, joined by PSP Investments, brings the financial strength, operating experience, and long-term perspective we sought.
 
Tishman Speyer is one of the world’s leading real estate owners and operators, with a record of stewarding major New York properties, including Rockefeller Center. Its plans call for substantial reinvestment in the Chrysler Building, from restoring its iconic façade and crown to modernizing critical building systems and repositioning the property for the future. Just as importantly, Tishman Speyer understands that the Chrysler Building is more than a real estate asset. It is a New York City landmark, and its success has a direct connection to Cooper Union’s mission.
 
Since 1902, Cooper Union has owned the land on which the Chrysler Building stands, a gift from Peter Cooper’s children intended to provide enduring financial support for the institution. Since then, the property has been integral to Peter Cooper’s vision of making an exceptional education accessible regardless of a student’s financial means.
 
As we begin this next chapter, our focus remains where it has always belonged: on our students, our mission, and ensuring that the extraordinary promise of a Cooper Union education endures for generations to come.
 
Sincerely,
 
Steven McLaughlin                    John Ruth
President                                  Vice President, Finance and Administration
 

  • Founded by inventor, industrialist and philanthropist Peter Cooper in 1859, The Cooper Union for the Advancement of Science and Art offers education in art, architecture and engineering, as well as courses in the humanities and social sciences.

  • “My feelings, my desires, my hopes, embrace humanity throughout the world,” Peter Cooper proclaimed in a speech in 1853. He looked forward to a time when, “knowledge shall cover the earth as waters cover the great deep.”

  • From its beginnings, Cooper Union was a unique institution, dedicated to founder Peter Cooper's proposition that education is the key not only to personal prosperity but to civic virtue and harmony.

  • Peter Cooper wanted his graduates to acquire the technical mastery and entrepreneurial skills, enrich their intellects and spark their creativity, and develop a sense of social justice that would translate into action.