Posted Feb 28, 2020, 8:20 PM
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Join Date: Jul 2001
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https://receive.news/02/28/2020/the-...n-park-avenue/
The company’s financial Citadel expands on Park Avenue
Receive News
February 28, 2020
Quote:
Citadel Securities, a market-making financial firm founded by hedge fund billionaire Ken Griffin, is ramping up its presence on Park Avenue as it continues to wait for its future Manhattan office to be finished.
The firm is planning to move into 425 Park Ave. along with Griffin’s similarly-named, but separate, hedge fund business Citadel. Construction of the glitzy new office building, however, has been marred by delays.
While Citadel Securities waits for the space, it is expanding at 350 Park Ave., where it is close to signing a deal for about 120,000 square feet. The lease will last roughly three years, giving the company time to continue to expand there while work continues on 425 Park Ave.
425 Park Ave.’s developer, L&L Holding Co., broke ground on the 47-story tower in mid-2016, originally saying that the ultra-high end office property would be complete by the end of 2018. The tower, which was designed by architect Norman Foster, was more difficult to build than originally anticipated.
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The developers said they struggled installing a triangular-shaped lattice of steel beams on portions of the building’s facade. And because the tower’s ground breaking preceded a rezoning of Midtown East, the builders had to integrate portions of the previous office property at the site into the new structure to permit its nearly 700,000 square foot size. That process, which included preserving concrete floors and steel beams from the original structure, proved complex.
After the delays, L&L Holding Co. then said the building would be finished by early 2020. But Citadel Securities’ lease at 350 Park Ave. suggests the timeline has again been pushed back. Although the building appears nearly complete, construction continues. A spokesman for L&L Holding Co. declined to specify when it would be finished.
David Levinson, L&L Holding Co.’s chairman and CEO, insisted in an email that the building was close to complete, stating that he expected it would receive a temporary certificate of occupancy, a necessary approval from the city before tenants can move in, by the summer.
“Much of the building is already operational,” Levinson said, stating that its elevators and heating systems were functional.
Levinson indicated L&L Holding Co. had turned over floors at the property to Citadel and Citadel Securities to allow the firms to begin building out their offices – a step that generally happens close to a building’s completion.
“Citadel’s plans have been approved and we expect them to start construction in the near future,” Levinson said.
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Chicago-based Citadel, which operates several hedge funds with over $30 billion in combined assets, leased over 200,000 square feet at 425 Park Ave. in 2016, paying around $300 per square foot, the highest ever office rent in the city, for the tower’s penthouse floor. Last year, the firm took over 100,000 square feet of additional space at 425 Park Ave.
Citadel Securities had been subleasing about 60,000 square feet at 350 Park Ave., an office building owned by Vornado Realty Trust. In the new lease, Citadel Securities will take an additional 60,000 square feet and will lease the entirety of the space directly from the building’s landlord.
The three-year timeline for the deal also suits Vornado, which has been contemplating tearing down 350 Park Ave. and developing a larger, state of the art office tower in its place using the Midtown East rezoning plan passed in 2017.
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