Tishman backs out of Mobil tower buy

October 21, 2008 09:23AM

Tishman Speyer has pulled out of negotiations to buy a leasehold on the former Mobil tower at 150 East 42nd Street from Japanese real estate company Hiro for somewhere between $300 million and $400 million. According to sources, Hiro had extended the terms of its land lease on the 42-story, 1.5 million-square-foot building, which sits on property owned by the Goelet family. Hiro had been paying an increasing annual rent from $9 million to $16 million for the next 36 years under its contract, and will now pay $22 million annually with hikes up to $72 million for a 75-year extension.

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