JPMorgan Chase strikes big air rights deal

Bank plans to buy roughly 700K sf from Grand Central Terminal owners
February 26, 2018 04:05PM

From left: Grand Central, 270 Park Avenue, Michael Dell and Jamie Dimon (Credit: Getty Images)

It looks like JPMorgan Chase will buy nearly 700,000 square feet of air rights from Grand Central to build its new 2.5 million-square-foot office tower in Midtown East.

The company plans to tear down its headquarters at 270 Park Avenue to make way for a new larger tower, following the rezoning of 78 blocks in Midtown East. The bank is negotiating with air rights owners MSD Capital, which oversees assets for Dell Technologies founder, Michael Dell, TF Cornerstone and Argent Ventures, Crain’s reported.

MSD Capital and TF Cornerstone own a majority of the 1.35 million square feet of air rights at Grand Central and are planning to sell nearly 700,000 square feet for $210 million or so, charging roughly $300 per square foot. The owners and JPMorgan Chase will have to contribute about $40 million to public realm improvements, as required by the rezoning.

Crain’s reported last week that the Archdiocese of New York, which owns St. Patrick’s Cathedral, was gearing up to sell some of its 1.2 million air rights. It appears that the Archdiocese plans to sell 30,000 square feet to another site in the district. [Crain’s] — Kathryn Brenzel