One Chase's Great Escape
The New York Post reports: The leaseback terms for JPMorgan Chase's sale of One Chase Plaza are so unpalatable, the bank will have to sweeten them to avoid chasing away possible buyers, sources told The Post.
The bank wants to sell 23 buildings around the country to rid itself of excess space -- most prominently among them One Chase Plaza, the 60-story downtown tower that was the brainchild of David Rockefeller and completed in 1960.
But with today's near-dead market for commercial properties, Real Capital Analytics research chief Dan Fasulo told The Wall Street Journal last week a sale of the 2.2 million square-foot One Chase Plaza was unlikely unless the bank leases back "a significant amount of space."
Realty Check has now seen a confidential "property summary" the bank prepared for interested parties by Houlihan Lokey, the investment-sale firm Chase tapped to sift offers.
According to the term sheet, Chase would lease its 31 floors in the tower for a lowball rent of $35 a square foot. More significantly, it would have options to give back more than half of the space to a new landlord over time -- including over a quarter-million square feet within two years.
Chase occupies about 1.27 million square feet in the building. A stacking plan shows the bank has floors 3-10, 13-26, 28-30, 50, 58 and a portion of 40.
According to the term sheet, the bank would have the right to give back "up to seven floors" at the end of the second year of the lease.
View the full article on The New York Post: One Chase's Great Escape
Posted by: Nina Turner