Citadel seeks office space in New York as it awaits its new Park Avenue tower

Ken Griffin of Citadel.

Ken Griffin’s Citadel is looking to lease a large office along Fifth Avenue in Manhattan, two people familiar with the transaction say.

The executives did not want to be identified because the deal is still in process and is considered confidential. The transaction may not be completed, one of the people said, noting that bargaining was not finished.

The firm, one of the largest and most successful hedge funds, is looking to take 365,000 square feet at 660 Fifth Ave., a 39-story midtown office tower that recently underwent a $400 million renovation by its landlord, Brookfield Properties.

In late 2022, Citadel announced a deal to anchor a new 62-story skyscraper at 350 Park Ave., designed by the architecture firm Foster + Partners.

The hedge fund occupies space at the existing tower at 350 Park Ave. and a neighboring property set to be part of that redevelopment.

It would use 660 Fifth Ave. to house its offices as those buildings are demolished and a 1.7 million-square-foot office skyscraper is built — a process expected to take several years.

Citadel and Citadel Securities, also operated by Griffin, together have about 440,000 square feet nearby at 425 Park Ave., another tower that was completed in 2022.

A deal with Citadel would be a sign of activity for 660 Fifth Ave. after a lull. Brookfield acquired the building from Kushner Companies in 2018 and embarked on an overhaul, recladding the wedding-cake-style property with a new facade featuring distinct rectangular windows.

The Australian financial institution Macquarie Group signed on for 220,000 square feet, the hedge fund Viking Global took nearly 140,000 square feet, and 400 Capital Management, an asset manager, grabbed 26,000 square feet, all in 2022. Leasing quieted, however, as Brookfield raised rents to try to capitalize on the momentum, with prices reaching as high as $200 per square foot for some of the building’s best spaces.

One of the executives with knowledge of Citadel’s real-estate plans said the firm would likely begin moving from 350 Park Ave. to 660 Fifth Ave. around the end of 2025. It could take five or more years to demolish the building, raise the new tower, and ready its interior for occupancy.

Citadel and Citadel Securities plan to take a combined 850,000 square feet in the new 350 Park Ave., which would make it the companies’ largest office location.

The rest of the tower’s square footage would be leased to other tenants, though Citadel has expansion rights as part of its agreement. The company plans to develop the project in a joint venture with the New York-based landlords Vornado Realty Trust and Rudin Management.

The company announced in 2022 that it would relocate its headquarters to Miami from Chicago.

The deal at 660 Fifth Ave., if it gets done, would follow another substantial recent transaction by a big name on Wall Street. Blackstone recently renewed and expanded its lease at its longtime home at 345 Park Ave. to 1 million square feet.