The Real Deal New York

Here’s how much money Michael Dell stands to make from JPMorgan air rights deal

Mogul partnered with TF Cornerstone in 2016 purchase
March 14, 2018 08:45AM

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

A partnership between Michael Dell’s investment firm and TF Cornerstone will likely make a profit of almost $90 million selling air rights to JPMorgan Chase for its new headquarters.

In July 2016, Dell’s MSD Capital and TF Cornerstone bought a 90 percent stake in 1.35 million square feet of air rights tied to Grand Central Terminal. They paid $126 million, or $104 per square foot, the New York Post reported. Investor Andrew Penson owns the remaining 10 percent.

JPMorgan Chase will reportedly buy 680,000 square feet of those air rights for $350 million per square foot, or around $238 million, according to the New York Post. The bank plans to build a 70-story office tower at 270 Park Avenue.

If the sale happens at these numbers, MSD and TFC will have made a profit of almost $90 million on their 2016 investment after paying a 5-percent fee to Grand Central and still own more than 500,000 square feet of air rights.

Dell was recently revealed to be the buyer of a $100.5 million penthouse at One57, which remains the city’s priciest-ever closed residential sale.  [NYP]Konrad Putzier