JPMorgan Chase, Hines pay $320.2M to AEW for office building in Midtown East

JPMorgan Chase in partnership with Hines paid $320.2 million to AEW Capital Management through the entity 250 Park Avenue, LLC for the office building (O9) at 250 Park Avenue in Midtown East, Manhattan. The expected use is cash flowing. The Commercial Observer reported on the deal, following a story in Bloomberg. 250 Park Avenue is across East 47th Street from 270 Park Avenue, which JPMorgan Chase is constructing as a global headquarters.
The deal closed on August 15, 2024 and was recorded on August 21, 2024. The property has 519,783 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $615 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for AEW Capital Management was Patrick McLaughlin. The signatory for JPMorgan Chase was Christopher McKenna. The contract date was June 27, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no records that the buyer JPMorgan Chase purchased any properties and it sold six properties in three transactions for a total of $296 million over the past 24 months.
The seller AEW Capital Management had not purchased any other properties and sold one property in one transaction for a total of $72 million over the same time period.

The property

The office building in Midtown East has 519,783 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 124 feet deep with a total lot size of 49,939 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The most recent loan totaled $206 million and was provided by JPMorgan Chase on June 25, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $2,550 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial renovation certificate of occupancy on March 5, 2019. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.2 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 15.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 25 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the six commercial properties representing 2,860,984 square feet of the 2,889,984 square feet. The largest owner is Metropolitan Transportation Authority, followed by NYS Common Retirement Fund and then Stawski Partners.
There are no active new building construction projects on this tax block.

The majority, or 99 percent of the 2.9 million square feet of built space are office buildings, with retail buildings next occupying 1 percent of the space.

The seller

The PincusCo database currently indicates that AEW Capital Management owned at least three commercial properties in New York City with 722,763 square feet and a city-determined market value of $235.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 84 percent of the 722,763 square feet of built space are office properties, with hotel properties next occupying 16 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Jpmorgan Chase owned at least five commercial properties with six residential units in New York City with 3,391,248 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 3,391,248 square feet of built space are office properties, with walkup properties next occupying 0 percent of the space. They are all located in Manhattan.

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