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

TRD 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
Clockwise from top left: 255 East 18th Street, 27-34 Jackson Avenue, 925 Prospect Place, 343 East 17th Street and 311 First Avenue (Credit: Google Maps)

Gramercy Park dev site leads New York’s mid-market investment sales

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Clockwise from left: 273 Church Street, 100 Livingston Street, 1135 Boynton Avenue and 1600 Kings Highway with Jeff Sutton (Credit: Google Maps)

Jeff Sutton deal in Brooklyn leads mid-market investment sales

Clockwise from left: 866 United Nations Plaza, 227 East 59th Street and 39 Clarkson Street (Credit: Google Maps)

Former West Village chocolate factory leads NYC’s mid-market investment sales

Cadre founder Ryan Williams and Allen Smith

Cadre brings on former Four Seasons CEO as president

AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

arrow_forward_ios
Loading...