Citadel's New Miami Headquarters to Redefine the City’s Skyline

Billionaire Ken Griffin made waves when he announced Citadel, his hedge fund firm, would relocate its headquarters from Chicago to Miami, marking one of the most high-profile financial firm moves to the city.

Nearly two years later, the waterfront site that Griffin purchased for his planned $1 billion headquarters remains undeveloped. Citadel employees continue to work from temporary office space in Miami’s financial district, and the firm has yet to hire a new developer after parting ways with their original partner last spring.

Griffin’s plans for Citadel’s Miami headquarters are starting to take shape. The building is expected to be one of the tallest towers in the city, boasting intricate design by Foster + Partners. The project features a luxury hotel at the top, revealed by The Wall Street Journal after viewing the renderings. “It’s a unique opportunity to build an iconic building in Miami for Citadel’s future,” said Gerald Beeson, Citadel’s chief operating officer.

Citadel is also expanding its presence in New York City and London, aside from Miami. Still, Miami will serve as the firm’s main headquarters, which Griffin frequently refers to as "Wall Street South." He demonstrated his intent to leave a lasting presence in Miami with the ambition of this grandiose plan of the new building. “Ken Griffin has been the highest profile transplant to Miami since LeBron James,” said Nitin Motwani, managing partner of Merrimac Ventures. “The Citadel effect is attracting more businesses and wealth to Miami, driving parts of the real-estate market and boosting philanthropic efforts.”

Griffin, who’s now 55, was born in Daytona Beach, Florida. The firm, founded in 1990, has grown into one of the largest hedge fund managers over the past three decades, now overseeing about $58 billion in assets.

Griffin’s personal real estate purchases is another reason this move is making headlines, besides the firm’s relocation. Griffin’s purchase of a 12-bedroom estate in Coconut Grove for more than $100 million has set a record in Miami. This acquisition was only part of his real estate spending spree in broader South Florida, with a portfolio of prime properties worth hundreds of millions of dollars.

Before publicly announcing the move, Griffin quietly acquired a 2.5-acre lot on Brickell Bay for $363 million, setting a new Miami record of $3,340 per square foot. Initially he tapped Sterling Bay to build the new Citadel headquarters, a Chicago-based developer known for his work with McDonald’s and Google.

“Sterling Bay is a leader in designing beautiful, state-of-the art buildings to meet the needs of the modern workforce,” said Zia Ahmed, a Citadel spokesperson, in 2022.

The partnership ended in April of last year, with Griffin expressing concerns with his ability to complete the project. Griffin told The Wall Street Journal he was seeking a developer with more experience in South Florida. The decision puzzled Miami’s real estate community, and even some employees involved in the project were caught off guard by the split.

Amid the uncertainties surrounding the headquarters, Citadel hired Paul Darrah, formerly with Alphabet’s Google, as its chief workplace officer to oversee real estate efforts. Darrah, who played a pivotal role in developing Google’s Manhattan campus, is preparing a temporary office space for Citadel at 830 Brickell, a Class A office building still under construction in downtown Miami. The 130,000-square-foot space, covering six floors, will provide Citadel with flexibility as they finalize their headquarters plans. The firm has the option to remain in the temporary space for up to nine years.

Citadel Securities, one of the world’s largest market makers, will also join the hedge fund in the new Miami headquarters once completed.

Griffin’s real estate ambitions in Miami face challenges. In addition to the initial waterfront lot, he has purchased several adjacent properties, including a large plot spanning an entire city block that houses a recently renovated office tower.

Griffin has already demolished a small apartment complex on one of the lots and conducted environmental testing on the primary site. However, a more than 20-story condo building sits in the middle of the land, potentially complicating Citadel’s plans for full control of the area.

Photo: The Miami River reflects the sky at sunset, Tuesday, June 1, 2021, near downtown Miami. (AP Photo/Rebecca Blackwell)