JPMorgan Chase is the first company to profit from New York City’s recently adopted Midtown East rezoning plan. The global financial services firm, together with NYC Mayor Bill de Blasio, announced it is going to demolish its existing headquarters building at 270 Park Avenue in Manhattan and build a new 70-story skyscraper at the site.
The former Union Carbide Building, a 52-story high-rise encompassing nearly 1.4 million square feet of space, will be replaced by an even taller tower. This new building will rise 500 feet higher than its 700-foot predecessor and will have 2.5 million square feet of floor space in total.
The property, located between 47th and 48th streets in Midtown Manhattan, is going to be transformed into a world-class global headquarters for the company’s 15,000 employees, who are currently spread across various office locations.
The state-of-the-art office tower will be a LEED-certified, energy-efficient skyscraper featuring innovative systems and technologies that will drive better collaboration and improved business synergies.
“At JPMorgan Chase, we believe that investing for the long-term is a hallmark of our success. With a new headquarters at 270 Park Avenue, 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,” Jamie Dimon, chairman & CEO of JPMorgan Chase, said in a statement.
In order to start the building’s construction, the financial services giant must first purchase the development rights from landmarks located in the surrounding district. Under the East Midtown rezoning plan, these kinds of transactions oblige the air rights seller to pay the city a contribution of at least $61.49 per square foot. The final amount will be used to finance projects aimed at improving the neighborhood’s public domain infrastructure. According to The New York Times, the funds generated through JPMorgan Chase’s acquisitions will amount to more than $40 million.
The project still has to gain various approvals. Pending these approvals, the redevelopment and construction works are expected to begin in 2019 and should take approximately five years to be completed.
JPMorgan Chase Tower was originally built in 1961 on the site of the 12-story Hotel Marguery and was designed by Natalie de Blois for Skidmore, Owings & Merrill. The building served as Union Carbide’s headquarters until 1983, after which it was occupied by Manufacturers Hanover Trust and by the Chemical Bank. Later, the Class A+ high-rise became JP Morgan Chase’s global headquarters. The tower was completely rehabilitated in 2012 and earned LEED Platinum certification, following the largest such renovation in history at the time.