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
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)

Big building owners prevent city from dumping container-pickup in trash-collection reform

“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

145-65 Wolcott Street in Brooklyn, 3428 Park Avenue in the Bronx and 20 East 35th Street (Credit: Google Maps)

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

arrow_forward_ios