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
Michael Gronager, chief executive officer, Chainalysis, in front of 114 Fifth Avenue (Chainalysis, LoopNet/Illustration by Steven Dilakian for The Real Deal)
Crypto data firm doubles space at Flatiron office
Crypto data firm doubles space at Flatiron office
A photo illustration of Austin, TX (iStock)
New York-based brokerage ramps up multifamily push in Texas, nationally
New York-based brokerage ramps up multifamily push in Texas, nationally
From left: Kristen Gilibrand, U.S. senator for New York; Ritchie John Torres, U.S. representative for New York's 15th congressional district (Getty Images)
Lawmakers push for heat sensor mandate in wake of Bronx fire
Lawmakers push for heat sensor mandate in wake of Bronx fire
(iStock)
Manhattan’s retail market ticks up toward rebound
Manhattan’s retail market ticks up toward rebound
Thompson Austin at 506 San Jacinto Boulevard, Austin, Texas (Hyatt)
Don’t call it a comeback: Austin hotels rebound but building never slowed
Don’t call it a comeback: Austin hotels rebound but building never slowed
Michael Medzigian, chairman and managing partner, Watermark Capital Partners (Watermark Capital Partners, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
From left: Kathy Hochul, governor of New York; Robert Mujica, director of the budget for New York State (Getty Images, iStock/Illustration by Steven Dilakian for The Real Deal)
$2B in Hochul budget could fund rent relief
$2B in Hochul budget could fund rent relief
1250 Mockingbird Lane, Dallas, TX (TXRE Properties)
Boston investor snags office building near Love Field in Dallas
Boston investor snags office building near Love Field in Dallas
arrow_forward_ios

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

Loading...