JPMorgan Chase & Co. is expanding its financial operations into Palo Alto, where the New York banking giant plans to break ground on a new headquarters focused on technology at Stanford Research Park by early next year.
The 10.17-acre campus, which will be dedicated to the development of financial technology -- also known as fintech -- is located on a site formerly occupied by Lockheed Martin Corporation at 3223 Hanover St. and is scheduled to open in 2020. It will house more than 1,000 employees, the company announced Friday.
Bill Wallace, head of digital, consumer and community banking, said the new campus will feature an innovation hub and make it easier for employees across multiple lines of business to collaborate and create new products and services. The company also plans to move 275 employees from Redwood City-based online payment provider WePay, which it acquired in late 2017, to the new headquarters and consolidate some of its office space in San Francisco.
"This is an important market for us and we're looking forward to expanding our footprint and attracting more of the area's top talent," Wallace said. "The addition of a first-class location is a key step for growing our presence in the Bay Area."
JPMorgan had pursued a number of other locations, including the former Theranos headquarters that shut down in September, two sources, who asked not to be named, told CNBC.
The project, which replaces existing buildings, will bring an additional 66,517 net square feet of office and research-and-development space to the site and will be completed in two phases, according to city records.
On Friday, the city approved a building permit for Phase 1 of the project, which includes the construction of a 115,000-square-foot, two-story building and a below-grade parking garage with 358 parking spaces. A separate permit will be required for Phase 2, which includes an 80,000-square-foot, two-story building above the garage along with additional surface parking and landscaping. Redwood City-based Truebeck Construction is building the campus, according to the permit.
The project site was formerly part of a 22.22-acre property designated as 3251 Hanover St. that included several buildings occupied by Lockheed Martin. The property was divided in 2016 after an affiliate of Sand Hill Property Company paid $52.5 million to acquire the ground lease from Lockheed Martin Space Systems, according to the Silicon Valley Business Journal.