JPMorgan Chase HQ Files for Development Rights Transfer
The banking giant filed plans to transfer 680,000 square feet of Grand Central Terminal’s air rights.
NEW YORK CITY—JPMorgan Chase took its next step in moving forward with its plans to tear down its office tower at 270 Park to build its new 2.5 million square-foot headquarters, as announced in February. Crain’s reported that on Sept. 6, 2018, the global investment bank and financial services company filed its application to transfer 668,000 square feet of air rights from Grand Central Terminal. The publication noted the Department of City Planning would review the request.
The banking giant plans for the new headquarters to have the capacity to house 15,000 employees. The current Park Avenue tower accommodates 3,500 workers. Demolition and construction are scheduled to begin next year and to take five years. In March, the bank signed a 10-year lease for 436,905 square feet at 390 Madison Ave. where employees will work while construction of the new building is underway.
In March The New York Times had reported that the Grand Central Terminal owners were selling air rights for $240 million. In February 2018, Real Capital Analytics had recorded that for the rumored amount of $210 million JPMorgan Chase was purchasing 700,000 square feet of air rights from the property owners, Argent Ventures, TF Cornerstone and MSD Capital. MSD is a private investment firm that exclusively manages the capital of Michael Dell, the chairman and CEO of Dell Technologies.
The approval of the transfer is all but a done deal, as the headquarters project had been jointly announced by JPMorgan Chase and the City of New York. As previously reported in GlobeSt.com, the city will receive $61.49 per square foot from the seller of air rights to pay for public improvements, as part of the Midtown East rezoning.
The zoning, which the City Council unanimously approved, 42-0, in August 2017, covers about 78 blocks around Grand Central Terminal. It allows for greater heights and density, potentially 6.5 million square feet of new development.
The New York Times had also reported that in addition to the Grand Central Terminal deal, JPMorgan Chase was negotiating to buy 100,000 square feet of air rights from St. Bartholomew’s Church and possibly a second religious institution. The newspaper noted that with the rezoning “huge deals are underway” in Midtown East.