Citadel pauses Manhattan expansion despite hiring spree

Business

realty check

By Steve Cuozzo

Citadel’s quest for 400,000 square feet of additional Manhattan space at 280 Park Avenue has hit the “pause” button.

Crain’s reported in June that Ken Griffin’s monster hedge fund was in negotiations with landlords SL Green and Vornado for the expansion space. The 1.27 million square-foot tower is almost fully leased, but several large leases are due to expire at the end of year.

Now, however, sources say that the Citadel talks are on hold, although it wasn’t immediately clear why.

Citadel has been on a hiring spree here, despite misinformed assertions that he was abandoning New York for Miami (where he indeed moved its headquarters from Chicago).

Griffin has kept some Manhattan landlords on pins and needles over his real estate strategy. He was in talks last year to take 200,000 square feet at Olayan America’s 550 Madison Ave., but no deal was struck.

Citadel is moving many of its staff to 425 Park Ave. from 520 Madison Ave. and from several other locations later this year. It’s also planning a new skyscraper at 350 Park Ave. in partnership with Vornado.

A source emphasized that a potential lease at 280 Park Ave. “was neither done nor dead.”