JP Morgan Chase to put regional campus in Plano
Plano has landed another huge employer.
JPMorgan Chase has decided to move 6,000 workers to a new office campus near the southwest corner of the Dallas North Tollway and State Highway 121.
“We have signed the letter of intent to build at Legacy West,” JPMorgan Chase spokesman Greg Hassell said Thursday. “Construction is going to begin this year.”
The project is expected to total more than 1 million square feet and could cost more than $300 million. Chase has been scouting Dallas’ northern suburbs for months for a location to consolidate many of its North Texas operations into a corporate office complex.
The $2 billion Legacy West development — also home to Toyota and Liberty Mutual Insurance — has been on the top of its list for some time, real estate brokers say.
Earlier this week, mortgage giant Fannie Mae said it would move more than 1,000 workers to Plano, too.
“It was a long time coming — that JPMorgan Chase has been looking around,” said Plano Mayor Harry LaRosiliere. “We are excited that they chose us. “It speaks to what we offer — giving employees the amenities and the opportunities to be more productive.”
The high-rise business campus that Chase will build is next door to Liberty Mutual’s regional business center, which is under construction. Toyota’s North American headquarters is being built just west of there.
“We expect the first employees to start moving in to the new campus in the second half of 2017,” Hassell said. “Total move-in will last through 2018 and 2019.
“Over time, we expect 6,000 employees to work at the new campus — roughly half of our employee population in the metroplex,” he said. “We haven’t figured out where everybody comes from yet. We have people in a number of buildings across the metroplex.”
Chase has more than 10,000 workers in the Dallas-Fort Worth area, mostly in buildings on the Dallas North Tollway in Farmers Branch, in downtown Dallas, on Stemmons Freeway in Lewisville, in Coppell and in the CentrePort business park south of Dallas/Fort Worth International Airport.
Hassell said the consolidation in Plano won’t significantly affect the New York-based bank’s workforce in downtown Dallas.
“Our new campus will make it easier for our employees to collaborate in providing outstanding service and solutions to customers and clients around the world,” Hassell said. “It will also reduce the company’s real estate operating costs in the Dallas-Fort Worth market, savings we’ll reinvest in our strategic campuses to provide the facilities, work environment and accommodations our employees need and deserve.”
LaRosiliere said Plano has agreed in principle to a package of economic incentives for the Chase campus. It still must be voted on by the City Council.
“We are expecting the development to total $150 million of real estate and another $70 million of business and personal property value. We are looking to provide a 50 percent tax abatement over a 10-year period,” the mayor said. Plano also plans to provide a $4.9 million economic grant to help Chase pay for the move.
Commercial real estate firms JLL and CBRE have been representing Chase in its hunt for locations.
Legacy West is a development of the Karahan Cos., KDC, Columbus Realty and J.C. Penney. KDC, which is building Toyota’s and Liberty Mutual’s offices, is competing to develop the Chase project, too. The 250-acre project includes an urban village with 280,000 square feet of retail and restaurant space; a 300-room, $82 million Renaissance hotel; and hundreds of apartments and offices along the west side of the Dallas North Tollway at Legacy Drive.
Within two years, more than 16,000 people will be working in the Legacy West project, making it one of the largest new job centers in the state.
LaRosiliere said Plano is studying plans for a bus system or other form of public transit to serve the new employers in the Legacy business park. He said the city is talking with DART officials about creating some type of service.
“We know what is coming,” he said. “We have already visited with local businesses and relevant stakeholders to talk about what our options are.”
In early 2014, when developers kicked off Legacy West, they said it could take as long as seven years to complete. But at the rate the project is taking shape, Legacy West will be substantially developed in two or three years. “I have 20 acres left, but that will be committed very soon,” said developer Fehmi Karahan. “This Chase project is even more significant on top of everything else that has happened. Legacy West has exceeded everybody’s expectations and our wildest dreams.”
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