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$65-Mil Worth of Chase Branch Sales Closing

NEW YORK CITY-When Chase Manhattan Bank and JP Morgan first announced their merger plans, the issue of real estate holdings loomed. The sale of 18 former retail branches has resolved some of the issue; at least 10 more will be sold.

By Amy Vaughn | Updated on March 19, 2001

NEW YORK CITY-In February, Chase Manhattan Bank signed a lease for 1.3 million sf of office space at 277 Park Ave., touching off questions about the company’s real estate plans given its merger with JP Morgan. The questions remain about a number of holdings and Chase is planning to occupy the entire Newport Office Center V and VI in Jersey City, NJ in 2002. In the meantime, the questions have been answered in part with the final closings on 18 retail branches for a total of $65 million. Chase is also looking to enter into sale/leasebacks of at least 10 other properties.

Chase has officially closed on 12 of the 18 and is in the process of closing the last six now. The properties include 510 Fifth Ave. (65,000 sf), 940 Madison Ave. (15,000 sf) and 39-15 Main St. (35,000 sf) in Flushing, Queens. The sales were made with the representation of GVA Williams Real Estate Investment Banking Division.

A spokesperson for GVA Williams reports Chase is in the process of selling 10 more properties currently in use and plans to lease them from the prospective buyer. The bank is looking to sell more than just these 10 in fact and is examining a number of existing branches. The spokesperson notes, “These properties are being sold pursuant to an overall strategy to monetize the bank’s non-strategic real estate holdings in order to re-deploy capital into banking and related services.”

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