Billionaire Citadel owner Ken Griffin plans to develop a new skyscraper that will serve as the anchor of the investment firm’s growing presence in New York City, according to a published report.
Griffin plans to build a “new 1.7 million square foot Trophy office tower” in Midtown that will replace adjacent buildings at 350 Park Avenue, 40 East 52 Street and 39 East 51 Street. Bloomberg reported,
An agreement was reached with Vornado Realty Trust and Rudin Management Company on the Citadel project. The agreement allows Griffin to pursue one of two pathways to develop the new headquarters during the period from October 2024 to June 2030, according to a release Friday.
“After careful consideration of other options in New York City, we have reached the decision to move forward with this transaction,” Citadel spokeswoman Zia Ahmed told Bloomberg. “We anticipate that if this building is built it will be able to house all of our New York City employees for both Citadel and Citadel Securities, reducing the need for us to spread them across multiple sites in New York City because They are in the present.
Griffin could take a 60% interest in a joint venture to build the skyscraper, which would value the site at $1.2 billion, with Vornado and Rudin each holding a minority stake. Alternatively, Griffin could choose to acquire the skyscraper site outright for $1.4 billion, effectively buying out the two partner firms.
According to Bloomberg, Citadel and its affiliate Citadel Securities have about 1,500 employees in New York. Globally, the firms have around 4,000 employees.
as the post saidThe Citadel moved earlier this year to luxe office space at 425 Park Avenue. The firm recently signed a deal to expand its presence in that building.
“Unfortunately, given the firm’s continued success and growth, we no longer have access to sufficient space that meets our needs at 425 Park Avenue,” said Ahmed.
As part of its agreements with Vornado and Rudin, Citadel leased the entire building at 350 Park Avenue and 40 East 52nd Street. The terms of the master lease will expire after the buildings are demolished to make way for the new structure.
If Griffin chooses to move forward with the joint venture, Citadel will acquire approximately 850,000 square feet (with expansion and contraction rights) in the project for its primary office in New York City as a “pre-negotiated 15-year anchor”. lease”. ,” according to the release.
In June, Griffin moved Citadel Headquarters in Miami from Chicago – a move reportedly motivated by rising crime rates in his former home state and business-friendly policies in Florida.