Billionaire Citadel boss Ken Griffin plans to develop a new skyscraper that would 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 would replace adjacent buildings at 350 Park Avenue, 40 East 52nd Street and 39 East 51st Street, Bloomberg reported.
Citadel reached an agreement on the project with Vornado Realty Trust and Rudin Management Company. The agreement allows Griffin to pursue one of two avenues to develop the new headquarters during a period stretching from October 2024 to June 2030, according to a release on Friday.
“We reached the decision to pursue this transaction after thorough consideration of other alternatives in New York City,” Citadel spokesperson Zia Ahmed told Bloomberg. “We expect 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, which will reduce the need for us to have them spread across multiple sites in New York City as they currently are.”
Griffin can take a 60% interest in a joint venture to build the skyscraper that would value the site at $1.2 billion, with Vornado and Rudin each holding minority stakes. Alternatively, Griffin can opt to acquire skyscraper site outright for $1.4 billion, effectively buying out the two partner firms.
Citadel and its affiliate, Citadel Securities, have about 1,500 employees in New York, according to Bloomberg. Globally, the firms have approximately 4,000 workers.
As The Post reported, Citadel moved into luxe office space at 425 Park Avenue earlier this year. The firm recently signed a deal to add to its presence in that building.
“Unfortunately, given the continued success and growth of the firm, we no longer have access to sufficient space that meets our needs at 425 Park Avenue,” Ahmed added.
As part of its agreements with Vornado and Rudin, Citadel leased the entire building at 350 Park Avenue and 40 East 52nd Street. The master lease terms will expire once the buildings are demolished to make way for the new structure.
If Griffin opts to move forward with the joint venture, Citadel will enter “a pre-negotiated 15-year anchor lease with renewal options for approximately 850,000 square feet (with expansion and contraction rights) at the Project for its primary office in New York City,” according to the release.
In June, Griffin moved Citadel’s headquarters to Miami from Chicago – a move reportedly motivated by raising crime rates in its former home state and business-friendly policies in Florida.