NEW YORK CITY — JPMorgan Chase (NYSE: JPM) plans to build a new 2.5 million-square-foot skyscraper that will replace its existing 50-story office building at 270 Park Ave. in Midtown Manhattan. The company plans to consolidate its global headquarters from various locations at the new tower, which some media outlets are reporting would rise 70 stories.
“We are recommitting ourselves to New York City while also ensuring that we operate in a highly efficient and world-class environment for the 21st century,” says Jaime Dimon, chairman and CEO of JPMorgan Chase.
The new headquarters building would house about 15,000 employees, replacing the existing facility that was designed in the late 1950s for about 3,500 employees. JPMorgan Chase plans to pursue LEED certification for the new facility, which would come on line in 2024 at the earliest. Most employees currently located at 270 Park Ave. would be relocated nearby during the development period.
Dimon and New York City Mayor Bill de Blasio jointly announced JPMorgan Chase’s new headquarters, which would be the first major project under New York City’s Midtown East Rezoning plan that was passed last year by the New York City Council.
“This is our plan for East Midtown in action. Good jobs, modern buildings and concrete improvements that will make East Midtown stronger for the hundreds of thousands of New Yorkers who work here,” says de Blasio. “We look forward to working with JPMorgan Chase as it doubles-down on New York as its international home.”
Under the East Midtown rezoning, JPMorgan Chase will purchase development rights from landmarks in the surrounding district in order to build a larger building. Any such transactions in the new East Midtown subdistrict require the seller of the air rights to pay the city a minimum contribution of $61.49 per square foot, which would fund improvements to the neighborhood’s shared streets, pedestrian plazas and thoroughfare upgrades.
The project will be subject to various approvals, and JPMorgan Chase will work closely with the New York City Council and state officials to complete the office tower. Once the project’s approvals are granted, redevelopment and construction are expected to begin in 2019 and take approximately five years to complete.
The project is expected to create over 8,000 construction-related jobs during the building period.
JPMorgan Chase & Co. is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The company serves millions of customers in the United States, as well as global corporate, institutional and government clients under its J.P. Morgan and Chase brands.
The company’s stock price closed on Wednesday, Feb. 21 at $115.50 per share, up from $91.06 per share a year ago.
— John Nelson