Citadel warns New York rhetoric could put $6 billion office project at risk

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Citadel warns on NYC office project

Highlights

Citadel COO Gerald Beeson warned in a memo that proposed New York tax hikes targeting Ken Griffin could jeopardize the $6 billion redevelopment of 350 Park Avenue.
Beeson stated that Citadel, Citadel Securities, and their employees have paid nearly $2.3 billion in local taxes over the past five years and currently employ about 2,500 people in New York.
He emphasized Griffin's $650 million in charitable donations to New York institutions but noted repeated clashes with local leaders and potential risks to the firm's Midtown expansion.

Memo links tax dispute to redevelopment plan

As reported by Business Insider, Citadel Chief Operating Officer Gerald Beeson says in a companywide memo that the hedge fund may not move ahead with the redevelopment of 350 Park Avenue after what he calls the mayor's “shameful” targeting of Griffin.

Beeson writes that Mamdani used Griffin as an example while promoting an additional tax on out-of-state owners of New York City residences valued at $5 million or more. He says the project, if it proceeds, would involve more than $6 billion in spending, create 6,000 construction jobs and support more than 15,000 permanent jobs in Midtown New York.

The memo argues that Citadel, Citadel Securities and their employees have made a substantial financial contribution to the city and state. Beeson says principals and team members, including non-residents, have paid nearly $2.3 billion in city and state taxes over the past five years.

New York role remains strategically important

Citadel says nearly 2,500 employees work in New York, where the firm has operated for more than 25 years. Beeson also highlights Griffin's charitable giving in the city, saying he has directed $650 million to institutions including the Robin Hood Foundation, Success Academy Charter Schools, major healthcare systems and museums.

Griffin has clashed with local political leaders before and moved Citadel and Citadel Securities from Chicago to Miami in 2022, partly after criticizing Chicago's handling of crime. A sharper pullback from New York could prove more complicated, however, as the city remains a leading base for major hedge funds and a key battleground for recruiting top investment talent.

In our earlier coverage of the NMR Trust 2026-CGCTR Miami CMBS deal tied to Citigroup Center, we reviewed the finalized ratings across the bond classes and the refinancing package backing the downtown Miami office tower. We also outlined the building’s leasing momentum and planned capital spending, along with how the senior and mezzanine debt proceeds are intended to refinance existing debt and fund improvements.

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