Hedge Fund Agrees to Pay Record $300 Per SF in NYC (No, Seriously)

425 Park Avenue (pictured) has a new city-record-breaking tenant, as hedge fund Citadel announced that it will pay $300/SF for the 200K SF penthouse portion of L&L Holding’s 900-foot-tall building. This footage value confirms that tenants may be willing to pay anything for premium office space, despite the fact that rent is typically around $80/SF in a Class-A Midtown building and only three buildings (9 West 57th, the General Motors Building and 667 Madison Ave) have ever rented for more than $200/SF. The hedge fund was founded by Ken Griffin, who has also been rumored to be the buyer of a $200M penthouse at 220 Central Park South. Even with the ludicrous price, 425 Park may not even be the record holder for long as other landlords and properties—the Time Warner Center, Park Avenue Tower, 1 Vanderbilt, 860 Washington Street and 432 Park Avenue--flirt with $200+/SF spaces. 425 Park is expected to open in 2018. [TRD]

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