Citadel is making moves in Midtown.
The financial giant signed a lease for 504,000 square feet across 20 floors of the 39-story, 1.25 million-square-foot 660 Fifth Avenue office building that takes up the entire western blockfront between 52nd and 53rd streets.
The deal was first reported in a tweet by this reporter.
Owner Brookfield Properties recently completed a $400 million redevelopment and modernization of the building previously known as 666 Fifth.
The new facade was reclad with 11×19-foot glass panels, along with a new lobby, amenity space, elevators and upgraded infrastructure that significantly reduced its carbon footprint. It is also powered by renewable electricity from Brookfield Renewable’s in-state hydropower plant portfolio.
The Macquarie Group already occupies 250,000 square feet, a private terrace and lobby and has its logo sign on the top of the tower.
Tenant 400 Capital leased another of the 25,000 square-foot tower floors in 2022 while other tenants include Stephens and Viking.
The building was represented in the deal by in-house brokers, a CBRE team and by attorneys with Skadden, Arps, Slate, Meagher & Flom.
Newmark brokers represented Citadel along with attorneys from Fried, Frank, Harris, Shriver & Jacobson LLP.
When the space is ready, Citadel is expected to move from one of its current locations at 350 Park Avenue.
That property is slated to be torn down and rebuilt, along with 40 E. 52nd Street, by Vornado and Rudin as a 1.8 million-square-foot, 1,600-foot-tall tower designed by Foster + Partners. Citadel has already signed an agreement to take about 850,000 square feet for its future use.
“This landmark lease underscores the success of our extensive redevelopment of 660 Fifth Avenue, transforming it into a premier, cutting-edge, and sustainable workplace in the heart of Midtown Manhattan,” Callie Haines, Executive Vice President, Northeast Region Head for Brookfield Properties’ office business.
The building was originally developed in 1957 by Tishman Realty & Construction and had an aluminum façade with a lobby and waterfall designed by Isamu Noguchi.
Purchased by Sumitomo Realty & Development in the 1990s, Tishman Speyer bought it in 2000.
Read more
In 2007, Kushner Companies paid a record $1.8 million for the property using $500 million and covering the rest with debt, at the urging of Jared Kushner. A year later they sold a 49% stake in the retail condominium to Vornado Realty Trust and Crown Acquisitions for $525 million.
Citibank did not renew its lease and as the financial crisis deepened, the building was appraised for just $820 million. Kushner sold a 49.5 percent stake to Vornado.