By Cara Lombardo 

JPMorgan Chase & Co. plans to build a new 2.5 million square-foot headquarters at 270 Park Ave. in New York City, the first major project under a city rezoning plan designed to rejuvenate the building stock in one of its biggest job centers.

The new building would replace the company's current headquarters at the same address and consolidate offices featuring workers in various locations, the company and city officials said Wednesday. The new skyscraper is expected to house 15,000 employees. The current facility was designed in the late 1950s for about 3,500 employees.

JPMorgan expects the project, slated to begin in 2019, to create more than 8,000 construction-related jobs during the five-year redevelopment and building period. Employees who work in the current building will be relocated nearby during construction, the company said.

The project is part of the city's rezoning plan for Midtown East, which City Council approved in August and is meant to spur investment in the Manhattan neighborhood, where the average age of office buildings is more than 70 years old.

The rezoning plan covers about 78 Midtown blocks in an area that includes Grand Central Terminal and provides a framework for commercial-property owners to modernize towers. The plan opened up the sale of unused development rights by owners of landmark properties.

JPMorgan will buy development rights from landmarks in the surrounding area to build the larger building. Under the city's plan, owners selling development rights are required to contribute to the city at least $61.49 a square foot of the air-rights sale price, to a fund for public projects such as shared streets and pedestrian plazas.

Mayor Bill de Blasio, who announced the plans in conjunction with the bank, said in prepared remarks that good jobs, modern building and concrete improvements will make the area "stronger for the hundreds of thousands of New Yorkers who work here." JPMorgan's earliest predecessor, the Manhattan Co., was chartered in New York City in 1799.

Write to Cara Lombardo at cara.lombardo@wsj.com

 

(END) Dow Jones Newswires

February 21, 2018 09:02 ET (14:02 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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