JPMorgan buys 667K sf of air rights from Grand Central for 270 Park

Bank paid Grand Central owners $208M

New York /
Dec.December 13, 2018 06:30 PM

270 Park Avenue (left) and 89 East 42nd Street (Credit: iStock, Getty Images, and Wikipedia)

JPMorgan Chase just purchased nearly 700,000 square feet of air rights from Grand Central Terminal for its planned tower at 270 Park Avenue.

The bank bought 666,766 square feet of development rights, 1,234 square feet less than what was expected based on the company’s application to the city in September. JPMorgan paid $208 million to Grand Central’s owners, TF Cornerstone and MSD Capital, according to documents filed on Thursday with the city’s Department of Finance.

Sources familiar with the deal said JPMorgan had the option to buy the additional 1,200-plus square feet of air rights but didn’t need to for its Park Avenue project. In March, the New York Times reported that the deal was valued at $240 million, but sources said that figure included the contribution to Midtown East’s public realm improvement fund — as required by the neighborhood’s recent rezoning.

With these and other air rights purchased from landmarks in Midtown East, JPMorgan plans to build a new headquarters that will span 2.5 million square feet. But construction of the 1,000-plus tall tower may face some logistical challenges. At an MTA board meeting earlier this week, officials revealed that the height of the project may require deeper footings, which could interfere with the East Side Access project, Crain’s reported. It’s unclear if this will impact the scale of JPMorgan’s project.

The tower was the first to take advantage of the Midtown East rezoning, which officials hope will add 6.5 million square feet of new office space to the neighborhood.


Related Articles

arrow_forward_ios
Blackstone's Ken Caplan (iStock; Blackstone)

Industrial now 36% of Blackstone’s RE portfolio

Industrial now 36% of Blackstone’s RE portfolio
Almanac Realty Investors managing director Matthew Kaplan (Almanac Realty; iStock)

Workforce housing investor gets $320M boost

Workforce housing investor gets $320M boost
Corcoran to sublet 50K sf in IBM Building

Corcoran to sublet 50K sf in IBM Building

Corcoran to sublet 50K sf in IBM Building
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
arrow_forward_ios

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

Loading...