JPMorgan Chase has held talks with major developers about moving its headquarters from Park Avenue to the World Trade Center or the Far West Side — at the same time it is planning to move a “significant” number of employees out of town.
As part of an overall real estate reshuffle, the financial giant plans to move an unspecified number of its New York City employees to New Jersey and Delaware, insiders said, although headquarters and trading operations would remain in Manhattan.
No decision has yet been made to move from 270 Park Ave., the bank’s longtime home, and sources termed talks with developers “exploratory.” JPMorgan Chase declined to make an official comment.
But sources confirmed on condition of anonymity that the global giant is in the midst of a “comprehensive” review of its real estate strategy.
In recent months, JPMorgan Chase CEO Jamie Dimon has “kicked the tires” at Related Cos.’ 50 Hudson Yards, a proposed 1,110-foot-tall, 2.3-million-square-foot skyscraper at 504-522 W. 34th St. The land is now owned by Coach Inc., but Related is to buy it for $130 million once Coach moves to its new home at Related’s 10 Hudson Yards three blocks south.
The bank has also talked with Brookfield Properties about its Manhattan West project, and with Vornado Realty Trust about its Hotel Pennsylvania development site. (Vornado chief Steven Roth hinted last week he might have a tenant to get the project started.)
It’s also talked to WTC developers Larry Silverstein and the Port Authority and Durst Organization about anchoring the proposed 2 WTC, or taking space in near-finished 1 and 4 WTC or in under-construction 3 WTC.
Whether or not JPMorgan Chase moves to a new building, Dimon is looking to further prune his Manhattan real estate portfolio following the sale of One Chase Plaza to a Chinese company last year.
JPMorgan Chase still owns 270 Park Ave., the former Bear Stearns tower at 383 Madison Ave., and part of Metrotech in Brooklyn.
Although 1959-vintage 270 Park Ave. has been modernized, 383 Madison has proven less efficient for trading operations than expected, insiders said.
“There are many issues in play,” a source explained. “Can their Midtown ‘campus’ remain viable? Besides moving people out of town, will they also save money down the line by consolidating into a new, signature building?”
Dimon is said to covet the tech and environmental benefits and long-term efficiencies possible only in brand-new buildings.
The Related site, for example, called 50 Hudson Yards, is a parcel west of 10th Avenue including the current home of Coach Inc. at 516 W. 34th St., which can be razed by Related and its partner Oxford Properties once Coach moves to its new tower.
Related has a “50 Hudson Yards” in planning stages for theoretical completion in 2019, but it would not be built without a tenant.
Reps for Related, Brookfield and Vornado didn’t get back to us. A rep for the city’s Economic Development Corp. had no comment.