Is Citadel having second thoughts about moving to 425 Park?

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

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
U.S. shopping mall values have struggled in recent years before valuations tanked in the wake of the pandemic amid an e-commerce boom.
US mall values plummeted by one-third in 4 years
US mall values plummeted by one-third in 4 years
CoStar CEO Andy Florance
CoStar comes home to play
CoStar comes home to play
Big Silicon Valley firm grabs 34K sf in Soho
Big Silicon Valley firm grabs 34K sf in Soho
Big Silicon Valley firm grabs 34K sf in Soho
Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
Stephen Ross and Charles Kushner (Getty)
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Last call? Cipriani facing possible foreclosure after mortgage default
Last call? Cipriani facing possible foreclosure after mortgage default
Last call? Cipriani facing possible foreclosure after mortgage default
Northpath Investments nabs Milford Plaza for $11M
Northpath Investments nabs Milford Plaza for $11M
Northpath Investments nabs Milford Plaza for $11M
Miki Naftali makes $73M dev play on Upper East Side
Miki Naftali makes $73M dev play on Upper East Side
Miki Naftali makes $73M dev play on Upper East Side
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...