Guest post by Bright Start News
Abu Dhabi is selling the Chrysler building (did you know they owned it?) and they’re taking a devastating loss.
ALL THANKS TO AOC-DEMOCRAT STYLE FREE TUITION!
People walking on the street below should look up as they pass by to make sure no Sovereign fund managers land on them.
RFR Holding has made an offer to buy the Chrysler Building for between $100 million and $200 million, far below the $800 million paid for a 90% stake in 2008 https://t.co/U53xSl6djd
— Bloomberg (@business) March 8, 2019
So the Chrysler building sold for $90 mil less than Kenny Griffin's apartment. Makes sense.
— Tom Hearden (@followtheh) March 8, 2019
Turns out they’re willing to take that big of a loss because the rent is too damn high!
While the building is owned by one entity, the land under it is owned by another, and the rent is climbing higher than the sky scraper itself.
It reported that the building’s owners do not own the ground beneath it and pay annual rent that went up from $7.75 million to $32 million in 2018 and was set to increase again to $41 million in 2028.
Citing brokers, the newspaper said those fees ‘have eaten away at much if not all of the building’s revenue.’
The building also has some 400,000 square feet (37,160 square meters) of space that is either vacant or will become so in the coming years, the Journal said. (more..)
Wow. Those are some STEEP increases in two years. Who is this price gouging landlord?
A liberal university of course! Cooper Union. They’ve run themselves into the ground, and are now forced to take emergency measures to stay alive. This is from their outside financial monitor, which they need because they’re incapable of running a business.
The school is a bloodbath of red ink.
- Budget Items: Faculty stipend – Budget Deficit ($545,508)
- Employee benefits: Prescription plan union staff – Budget Deficit ($350,305)
- Employee benefits: FICA – Budget Deficit ($125,600)
- Employee benefits: STD administration – Budget Deficit ($103,097)
- Engineering school: Staff full time – Budget Deficit ($543,448)
- Engineering school: Faculty full time – Budget Deficit ($124,223)
- Engineering school: Allocated fringe benefit – Budget Deficit ($118,036)
- Engineering school: Allocated Payroll Taxes – Budget Deficit ($107,009)
- Buildings & grounds: Contracted svc other – Budget Deficit ($277,031)
We have repeated this information from our prior reports to re-iterate that, although much operational progress has been accomplished during 2018, the persistent deficit levels suggest that the challenge of restoring financial health continues.
When comparing the financial results of 2018 to 2017, there are several substantial events that have occurred. The improvement in operating results of $17.7 million results from both continuing or structural events, and some events that may or may not be repeatable. The most notable of these items include:
Increase in investment return utilized for operations of $12.3 million ($50.0 million in 2018 and $37.7 million in 2017). This is principally the result of a reset in rents on the Chrysler land lease. This is a structural event, and in fact, there are contractual increases throughout the term of the lease, which expires in 2147. The contractual rents received under the Chrysler Building lease increased from $7.8 million in 2017 to $20.1 million in 2018, and will increase to $32.5 million in 2019 through 2027, with additional increases thereafter. This contractual change in 2018 results in an improvement in the operating results of over $12 million from 2017, with the further increase in 2019 contributing to generating positive cash results of operations.
CONCLUSION
Just imagine what will happen if Democrat’s get their way and make tuition “free”. The entire country will look like the Chrysler building! A reader writes in to add:
Social justice activists and extreme leftists such as Alexandria Occasion Cortez has demanded tuition-free education. In this interview, AOC forcefully admits she intends to make the private sector pay for the $40m price tag of her total agenda.
We are witnessing fascist socialism of the kind that destroyed Venezuela destroying one of New York’s most vaulted architectural treasures. You cannot have radical socialists using the law to pickpocket businesses into bankruptcy.
I strongly suggest that we go after Cooper. It must charge tuition to most students within realistic budget constraints. Financing free tuition to the tune of $32m annually at the certain demise of the Chrysler building and the looting of its owners must not be allowed.
