Ken Griffin’s game of chairs in the Manhattan office market appears to be continuing, at least for now.
Griffin’s hedge fund, Citadel, is in talks to buy a 400,000-square-foot site at 280 Park Avenue, Crain’s Report, citing two unnamed sources. The move is a boon for SL Green and Vornado Realty Trust, two of the city’s largest commercial landlords, who jointly own the 1.2 million-square-foot building.
Whether the lease actually happens remains to be seen, and there are reasons to be skeptical.after signing short term sublease A few years ago, Citadel, which occupies 24,000 square feet at 520 Madison Avenue, relocated some of its 1,500 New York employees to L&L Holding Company’s new building at 425 Park Avenue. Citadel signs a record $300 per square foot deal In 2015, a few months after the 47-story penthouse broke ground.
Then there’s 350 Park Avenue. This year, details emerge About Citadel hopes to build a 51-story Norman Foster-designed tower on the site, where it will redevelop properties leased from Vornado and Rudin Management. Citadel will occupy 54 percent of the property’s 1.7 million square feet, although the project is still 10 years away from realization.
Finally, the Citadel relocated from Chicago to Miami two months ago, Griffin sever ties With Sterling Bay on plans to establish the company’s new headquarters. However, rather than retreating from South Florida, Citadel chose to handle some of the work in-house and partnered with another developer on the Brickell project.
According to Crain’s, 280 Park Avenue is 98 percent occupied, but six tenants will leave by the end of the year. Citadel declined to comment for the publication. Vornado and SL Green did not immediately respond to requests for comment real deal.
The office leasing environment in Manhattan continues to challenge landlords.tenant 7.4 million square feet According to Colliers, net absorption was negative 1.2 million square feet in the first quarter, and average asking rents fell in all three submarkets Colliers tracks.
— holden warner
