JPMorgan’s Headquarters Plan Paves Way for Another Manhattan Tower
JPMorgan agreed to transfer air rights and pay $35 million to the developer, according to a public document.
(Bloomberg) -- JPMorgan Chase & Co.’s plan to erect a new Manhattan headquarters is clearing the way for the demolition of a nearby office building that would be replaced by a new tower.
Rudin Management Co. has approached city officials about a proposal to tear down 415 Madison Ave., a 24-story office building that is located about 500 feet from JPMorgan’s planned headquarters at 270 Park Ave., according to people familiar with the matter who asked not to be named because the matter is private.
Rudin would use development rights acquired from JPMorgan to erect a new building that includes pedestrian access to a planned Long Island Rail Road concourse under Grand Central Terminal, public documents show.
“We are excited by the opportunity to reimagine 415 Madison Avenue,” Nicholas Martin, a spokesman for the developer, said in a statement. “Our proposal reflects the goals of the city’s Midtown East rezoning by producing 21st century office space and improving mass transit.”
A representative for JPMorgan declined to comment.
The Rudin plan, which would replace a building it opened in 1955, grows out of a pair of initiatives poised to reshape a section of midtown Manhattan in coming years. They include the MTA’s effort to connect commuter trains from Long Island to Grand Central Terminal, as well as a 2017 rezoning that allows for the construction of taller buildings in the area.
JPMorgan said last year it would demolish its existing Park Avenue headquarters and replace it with a state-of-the-art skyscraper, using development rights purchased from nearby St. Bartholomew’s Church. JPMorgan later agreed to fund certain improvements to Grand Central Terminal after city officials called on the firm to shoulder more costs associated with it its expanding footprint in the neighborhood.
As part of the Rudin plan, JPMorgan agreed to transfer air rights and pay $35 million to the developer, according to a public document. JPMorgan, which is splitting some construction costs with the MTA, will receive $45 million from the authority to reimburse it for the cash payment and air rights passed to Rudin.
The deal is “a substantial step forward” toward improving access to midtown Manhattan for Long Island commuters, said Aaron Donovan, a spokesman for the MTA.
To contact the reporter on this story: Patrick Clark in New York at pclark55@bloomberg.net
To contact the editors responsible for this story: Craig Giammona at cgiammona@bloomberg.net, Daniel Taub
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