Property Owners Jostle for Deals After Midtown East Rezoning

A flurry of air rights purchases have already begun as large property owners take advantage of Midtown East's upzoning. Some big names include JPMorgan Chase and the Archdiocese of New York.

1 minute read

March 1, 2018, 1:00 PM PST

By Philip Rojc @PhilipRojc


Midtown East

Billie Grace Ward / Flickr

We've been following the saga of Midtown East's contentious upzoning plan, from a failed attempt under Mayor Bloomberg to Mayor de Blasio's successful bid for approval last year. Sooner than anticipated, major property owners are moving on plans to rework the district.

JPMorgan Chase has been one of the first to move. As Crain's reports, "JPMorgan Chase announced that it would demolish its headquarters at 270 Park Ave. [...] and construct a 2.5 million-square-foot office tower in its place." Of $200 million the bank would have to shell out for new air rights, "the city would receive about $40 million of that for a public-improvement fund to spruce up the district's streetscape."

The Archdiocese of New York also has plans. "It was unclear exactly what the church had in mind, but St. Patrick's Cathedral is sitting on a gold mine of about 1 million square feet of unused development rights. Even at the minimum price per square foot, that equates to $300 million, with roughly $60 million of that going to the public-improvement fund."

Other places of worship may also sell their rights. "[...] many landmarked properties, such as St. Bartholomew's Episcopal Church and Central Synagogue, might be happy to fund repairs to their buildings by cashing in on their air rights under the more expansive transfer laws baked into the rezoning."

Sunday, February 25, 2018 in Crain's New York Business

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Aerial view of new neifhborhood under construction with enpty lots in foreground.

In California Battle of Housing vs. Environment, Housing Just Won

A new state law significantly limits the power of CEQA, an environmental review law that served as a powerful tool for blocking new development.

July 2 - CALmatters

Low-rise Pearl Sreet mall in Boulfer, Colorado.

Boulder Eliminates Parking Minimums Citywide

Officials estimate the cost of building a single underground parking space at up to $100,000.

July 2 - Boulder Reporting Lab

Two-story buildings with porches in walkable Florida neighborhood.

Orange County, Florida Adopts Largest US “Sprawl Repair” Code

The ‘Orange Code’ seeks to rectify decades of sprawl-inducing, car-oriented development.

July 2 - CNU Public Square