Is Citadel having second thoughts about moving to 425 Park?

Hedge fund could terminate one of the priciest office leases in city’s history

TRD New York /
Jun.June 01, 2018 07:30 AM

Ken Griffin and 425 Park Avenue (Credit: Dan DeLuca via Flickr, 425 Park Avenue, and Getty Images)

Is hedge fund Citadel having second thoughts about its record office lease at L&L Holding Company’s 425 Park Avenue?

The company has the right to get out of its lease because construction is delayed, Crain’s reported, and has hired JLL to look for office space. Officially Citadel is committed to the luxury office development, but according to Crain’s, some industry insiders wonder whether the company is quietly looking for alternatives.

“It’s an opportunity to check the market and re-examine whether the lease they signed two years ago is still the best deal for the firm,” one source told the news outlet.

Other sources told Crain’s that Citadel is merely looking for space to move into until the building is finished, and that the company is actually considering expanding at the new development. “There’s no question that Citadel remains committed to 425 Park Avenue,” L&L’s CEO David Levinson said.

The $1 billion, 47-story office development was supposed to be completed by late 2018, but instead construction will likely continue into 2020. The delay would allow Citadel to terminate its lease in July.

The hedge fund agreed to take 200,000 square feet in the tower in 2016, paying a record $300 per square foot for the top two floors.

Citadel’s head Ken Griffin, who appears to be a bit of a penthouse aficionado, also reportedly signed a contract to buy a $200 million apartment at 220 Park Avenue South[Crain’s] — Konrad Putzier


Related Articles

arrow_forward_ios

Small Talk: Every community meeting. About every development project. Ever.

From left: 254 Water Street, 45-01 Northern Boulevard and 34-08 46th Street (Credit: Google Maps)

Here’s what the $10M-$30M investment sales market looked like last week

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

From left: 305 East 47th Street and 286 River Avenue (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Clockwise from top left: 2-34 Beach 102nd Street in Far Rockaway, 175 Canal Street West in Mott Haven, 102 Fulton Street, and 71 Smith Street in Boerum Hill (Credit: Google Maps and StreetEasy)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

arrow_forward_ios