Photographer: Craig Warga/Bloomberg

JPMorgan Takes Offices in Jersey City Being Left by KCG

JPMorgan Chase & Co. reached a deal to lease office space in a tower at the Newport complex in Jersey City, New Jersey, where the bank will move some of its technology employees from New York.

The agreement for 400,000 square feet (37,000 square meters) at 545 Washington Blvd. was signed on Friday, said Richard LeFrak, chairman of the LeFrak Organization, which controls Newport. The bank will move into space currently occupied by KCG Holdings Inc., a brokerage and automated trader that is planning to relocate across the Hudson River to the New York Mercantile Exchange building in lower Manhattan.

LeFrak called the move a win-win for both New York and the New Jersey waterfront, which have often competed for financial tenants. JPMorgan plans to move about 2,150 information-technology jobs from three New York City locations as part of a cost-cutting effort, a person with knowledge of the matter said last month.

“This is not a New York win and a Jersey loss or a Jersey loss and a New York win,” LeFrak said in a phone interview. “For Newport, it’s a commitment from a major financial institution, to put its fin-tech workers here, not just back-office workers. They found it was an excellent place for their operations.”

The move will bring JPMorgan about $188 million of tax benefits over a decade, the person with knowledge of the situation said last month. Andrew Gray, a JPMorgan spokesman, declined to comment.

The bank’s commitment to 545 Washington was reported earlier Wednesday by the Wall Street Journal.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE