Deal is the one of the first to take advantage of Midtown East rezoning
JPMorgan Chase has acquired 666,766 SF of development rights from TF Cornerstone and MSD Capital (Grand Central’s owners) for $208 million, according to theNYTimes. Under the rules from the Midtown East rezoning, the city will collect $41.6 million for public improvements in the area.
The Plans: Chase will demolish its property at 270 Park Avenue between 47th and 48th Streets. The Bank will then build a new world headquarters to house 15,000 employees. The tower will rise 70 stories and span approximately 2.5 million SF.
Midtown East Rezoning Crash Course: Buildings with landmark status may sell their unused development rights anywhere in the district. On such sales, the city will collect either $61.49 per square foot or 20 percent of the total cost of the air rights, whichever is higher. The money will fund pedestrian and transit improvements in Midtown East.
District Boundaries: The rezoned blocks run from East 39th Street to East 57th Street, from Third to Madison Avenues. Landmark air rights within the boundaries total around 3.6 million SF.