Fosun International Limited, China's largest private conglomerate by revenue, has agreed to purchase One Chase Manhattan Plaza from JP Morgan Chase for $725 million, putting down a 10%, nonrefundable deposit on the deal this week. Fosun, the investment arm of China's biggest closely held industrial group, intends to keep the tower as an office building, said Darcy Stacom, vice chairman at CBRE Group Inc., who led the brokerage team that conducted the sale for JPMorgan. Potential buyers had been offered residential conversion as an option, to capitalize on rising Manhattan condominium prices.
"The wave continues with this purchase," said Dan Fasulo, managing director of property-research firm Real Capital Analytics Inc. "We've seen a series of trophy transactions in key cities around the United States done by the Chinese, in New York, San Francisco, Los Angeles, as well as smaller acquisitions in other markets around the country."
Owned by Guo Guangchang, Fosun beat out over half a dozen bidders for the 60-story office tower, which is roughly half occupied by JPMorgan staff that will mostly relocate to other New York locations. Chase moved its headquarters from One Chase Manhattan Plaza to an address near Grand Central Terminal in 1996. Situated in the core area of the north section of downtown Manhattan, the financial district of New York City, the plaza of the building connects with 7 subway lines providing great access to public transportation. A spokeswoman for Fosun said that property will only grow in value, citing its prime location and the renovation of the nearby Fulton Street transportation hub, according to CNN Money.
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