NEW YORK CITY—JPMorgan Chase & Co. is in early negotiations to build a headquarters complex in the Hudson Yards neighborhood, according to Bloomberg News.
The largest bank in America wants to build two towers totaling four million square feet, an effort that would carry a roughly $6-billion price tag, says a person with knowledge of the discussions. The company is in talks with Related Cos., New York City and the state for a deal, which could fall apart as the sides negotiate subsidies and costs. Related did not respond to a request for comment by press time.
The bank has requested at least $1 billion in property-tax abatements in the form of Payments in Lieu of Taxes, and other subsidies, which city officials have rejected, says a spokesman for Mayor Bill de Blasio. The city already has invested more than $1 billion in the far west side, he notes—the area where Related is planning a $20 billion development—to make the neighborhood commercially feasible.
A move by JPMorgan to Hudson Yards potentially would bring about 16,000 jobs to the area, while reducing or ending JPMorgan's longtime presence on Park Avenue just north of Grand Central Terminal, says the person with knowledge of the talks.
If the deal goes through as it is being requested, the bank probably would sell its 1.3 million-square-foot headquarters building at 270 Park Ave. along with 383 Madison Ave., a tower completed in 2001 as the headquarters of Bear Stearns Cos., which JPMorgan took over when it bought that firm in 2008.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
