Sterling Gets 598,000-SF Chase Tower in SLB

DETROIT-Chase Bank, a subsidiary of JPMorgan Chase, has sold its 598,000-sf Michigan headquarters, Chase Tower, to the locally based Sterling Group in a sale-leaseback deal. The sales price was undisclosed. The bank has signed a 10-year lease to continue to occupy the first eight floors of the landmark building, about 215,000 sf, and Sterling has begun looking for tenants for the rest of the space.

The National Bank of Detroit opened the 14-story building as its headquarters in 1959. In 1998, NBD merged with Bank One, which was bought by Chase in 2004. The building has been up for sale since then, says a company spokeswoman, and the bank employees have been slowly moving materials to just the first eight floors in preparation for leasing the property. “We prefer to be a long-term tenant than own the building ourselves,” the spokeswoman says. “Our expertise is helping people and companies with financial needs, not real estate.” The building’s name will remain as part of the lease deal, she says.

Danny Samson, vice president of the Sterling Group, tells GlobeSt.com that his firm has confidence in the city. The firm is located across the street from Chase Tower, making it easier to be a responsible landlord, he says. “This building truly represents a great opportunity, similar to our Guardian Building that we own Downtown,” Samson says. “We took that from 6% occupancy to about 50% occupancy in three years. We believe we have the advantages to bring in tenants.”