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Real estate mogul loses Chrysler Building eviction battle, ordered to pay  million in back rent
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Real estate mogul loses Chrysler Building eviction battle, ordered to pay $21 million in back rent

A New York judge on Thursday ordered Chrysler Building tenants to pay their rent to Cooper Union instead of the real estate company that owns the lease — and ordered corporate mogul Aby Rosen to pay $21 million in rent arrears at the school.

This bitter setback comes after Rosen sued the venerable college, which owns the land beneath the iconic Art-Deco skyscraper, following its decision to evict his company RFR on September 27.

Rosen furiously fought the eviction order, claiming Cooper Union failed to follow proper procedure in issuing the eviction notice.

Manhattan Supreme Court Justice Jennifer Schecter called his defense “flimsy.”


Real estate mogul Aby Rosen lost eviction battle against Chrysler Building owner Cooper Union.
Real estate mogul Aby Rosen lost eviction battle against Chrysler Building owner Cooper Union. LightRocket via Getty Images

In his ruling, Schecter also barred Rosen from interfering with Cooper Union’s management of the property.

“The court clearly recognized that we had the right to terminate the lease,” said John Ruth, vice president of Cooper Union.

“Mr. Rosen and his partners had presented no viable defense to the termination of the ground lease. The court also noted as undisputed the fact that Rosen and his partners were $21 million in arrears.

RFR purchased the long-term lease for the tower in partnership with Austrian real estate company Signa in 2018 for $151 million.

The price of the million-square-foot monument was low because it is subject to the land lease, which rose from $7.75 million in 2018 to $31.5 million this year, and will reach $41 million in 2028.


The iconic Art-Deco tower is approximately 60% leased.
The iconic Art-Deco tower is approximately 60% leased. Christophe Sadowski

Rosen attempted to renegotiate the terms of the lease with Cooper Union, but negotiations were hampered when Signa became insolvent last November — leading to a bitter standoff where the school and Rosen each told office tenants and businesses to pay their rent and not the other.

The developer sued the school for $100 million in damages and claimed its failure to pay rent was because office tenants vacated the Chrysler Building due to Cooper Union’s alleged incapacity to end the harassment of Jewish students by a “mob” after the October 7 terrorist attack. on Israel by Hamas.

Rosen did not name any of the tenants believed to have fled. The tower is approximately 60% leased.

The judge said a landlord’s actions in any other property had no bearing on the tenant’s obligation to pay rent.

An RFR spokesperson called the company’s withdrawal from the building “temporary.”

The spokesperson said that RFR’s leadership, which included leading a “multi-hundred-million-dollar restoration,” was “exemplary” and that “losing RFR’s leadership endangers not only the financial stability of the building , but also its place at the heart of New York’s heritage and heritage. urban identity. »

It was not immediately clear whether Rosen would appeal the decision.