JPMorgan Chase strikes big air rights deal

Bank plans to buy roughly 700K sf from Grand Central Terminal owners

New York /
Feb.February 26, 2018 04:05 PM

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 


Related Articles

arrow_forward_ios
CBRE's Emma Giamartino and Bob Sulentic (CBRE, iStock)
Flush with cash, CBRE is ready to spend
Flush with cash, CBRE is ready to spend
GCP CEO Alan Yang (Getty, GCP)
GLP raises $2.3B for logistics property fund
GLP raises $2.3B for logistics property fund
Alphabet CEO Sundar Pichai and Twitter CEO Jack Dorsey (Getty)
Twitter, Google latest big companies to delay office returns
Twitter, Google latest big companies to delay office returns
Durst Organization CEO Douglas Durst (Getty)
Durst to fire unvaccinated corporate employees Sept. 6
Durst to fire unvaccinated corporate employees Sept. 6
Converting offices to lab spaces comes with challenges, as some spaces need specific ventilation and upgraded electrical facilities (Getty)
Conversions from offices to life science labs booming
Conversions from offices to life science labs booming
132 West 14th Street and KPG’s co-founders Rod Kritsberg and Gregory Kraut (Avison Young, KPG)
KPG signs long-term ground lease for 57K sf at 132 West 14th Street
KPG signs long-term ground lease for 57K sf at 132 West 14th Street
Paramount Group lost $16 million last quarter
Paramount Group posts $16M quarterly loss
Paramount Group posts $16M quarterly loss
Commercial property sales outpace pre-pandemic figures in Q2
Commercial property sales outpace pre-pandemic figures in Q2
Commercial property sales outpace pre-pandemic figures in Q2
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...