With big lease expansion, Citadel kills rumors it’s spooked by 425 Park delays

Hedge fund is taking on an additional 124K sf at L&L Holding's tower

New York /
Jan.January 08, 2019 08:30 AM

From left: 425 Park Avenue, Citadel CEO Ken Griffin, and L&L Holding Company CEO David Levinson (Credit: Wikipedia)

Citadel is expanding its foothold at L&L Holding Company’s 425 Park Avenue, after doubts were raised last year about the hedge fund’s commitment to the $1 billion office development.

Due to construction delays that had pushed the project’s completion from 2018 to 2020, Ken Griffin’s $30 billion hedge fund had the option to terminate its lease in July. Instead, Citadel is now adding 124,000 square feet to its previous 211,400-square foot lease, according to the New York Post.

Part of Citadel’s earlier lease at the $1 billion, 47-story tower included the top two floors of the building, which reportedly went for a record $300 per square foot. The expansion gives the company a total of 16 floors at the building, and brings the development to 48 percent leased – with Citadel as the only tenant so far.

Among various complications, one factor that caused delays at the full-block project was the city’s byzantine building code, which required L&L to keep 25 percent of the existing building’s structure to avoid downzoning. Integrating the old and new structures proved to be a greater challenge than expected.

JLL’s Alex Chudnoff, Joseph Messina and Matthew Astrachan represented Citadel in the deal. When Citadel hired JLL last year to look for office space, some industry insiders said the company was merely looking for space to move into before 425 Park’s completion. The possibility of an expansion was also raised at the time.

Citadel was among the few hedge funds that prospered in 2018, with its flagship Wellington fund gaining over 9 percent. [NYP] — Kevin Sun


Related Articles

arrow_forward_ios
(Moinian Group, CVS)
CVS signs lease for 512 7th Avenue store
CVS signs lease for 512 7th Avenue store
U.S. President Joe Biden removes his mask before speaking about updated CDC mask guidance. (Getty)
In CDC we trust: Mask guidance prompts changes
In CDC we trust: Mask guidance prompts changes
Major real estate stocks ended in negative territory this week. (Getty)
Real estate stocks, markets jittery over inflation
Real estate stocks, markets jittery over inflation
Joseph Chetrit with 427 and 459 (left) Broadway (Getty, Beyond My Ken/Wikimedia)
Chetrit Group falls behind on Soho portfolio mortgage
Chetrit Group falls behind on Soho portfolio mortgage
Joel Landau, chairman and founder of Allure Group. (Google Maps, Score NYC)
These were the top outer-borough loans last month
These were the top outer-borough loans last month
David Schonbraun (SL Green)
SL Green investment chief David Schonbraun steps down
SL Green investment chief David Schonbraun steps down
Aby Rosen and 522 Fifth Avenue (Getty, Google Maps)
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
arrow_forward_ios

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

Loading...