Key Takeaways
- • Castle Hook Partners signed a lease for the 53,000-square-foot penthouse at 625 Madison Avenue, establishing a new Manhattan office rent record at $350–$400 per square foot, surpassing the previous $327.50 per square foot benchmark set at 9 West 57th Street in 2026.
- • Castle Hook will pay up to $21.2 million annually in rent, with occupancy expected in the second half of 2029 upon building completion.
- • The hedge fund, managing $11 billion in assets with 35 employees, will relocate from the General Motors Building on Fifth Avenue to the 1,200-foot mixed-use development.
- • Related Companies' 625 Madison Avenue has now secured three major institutional tenants: General Atlantic (150,000 square feet), Veritas Capital (93,000 square feet), and Castle Hook Partners, demonstrating strong demand for premium Manhattan office space.
- • Saudi Arabia's Public Investment Fund holds a two-thirds stake in the project, having invested approximately $200 million; Related acquired the site from SL Green in December 2023 for more than $600 million.
Summary
Castle Hook Partners, a New York-based hedge fund led by David Rogers, has leased the penthouse floors at Related Companies' 625 Madison Avenue development, breaking the Manhattan office rent record with rates between $350 and $400 per square foot annually. The 53,000-square-foot commitment carries an estimated annual rent of up to $21.2 million. This marks a significant achievement for Related, coming weeks after securing General Atlantic as an anchor tenant for the high-profile Midtown Manhattan project.
The new rental rate surpasses the previous record of $327.50 per square foot established at Stefan Soloviev's 9 West 57th Street earlier in 2026, reflecting robust institutional demand for premium office space in Manhattan's central business district. Castle Hook, which manages $11 billion in assets and employs 35 workers, will occupy the space beginning in the second half of 2029, upon the building's expected completion. The fund is relocating from its current headquarters at the General Motors Building on Fifth Avenue.
The lease underscores the successful repositioning of 625 Madison Avenue. Related acquired the site from SL Green in December 2023 for more than $600 million, pivoting from an initially planned mixed-use development to focus on delivering a premium office tower that capitalizes on institutional investor appetite for high-quality Manhattan workspaces. The 1,200-foot building has now secured three major institutional anchors: General Atlantic signed for 150,000 square feet, Veritas Capital committed to 93,000 square feet, and Castle Hook Partners occupies the penthouse. Saudi Arabia's Public Investment Fund holds a two-thirds stake in the 860,000-square-foot development, having committed approximately $200 million to the project as part of the stake acquisition disclosed in 2025.
The new rental rate surpasses the previous record of $327.50 per square foot established at Stefan Soloviev's 9 West 57th Street earlier in 2026, reflecting robust institutional demand for premium office space in Manhattan's central business district. Castle Hook, which manages $11 billion in assets and employs 35 workers, will occupy the space beginning in the second half of 2029, upon the building's expected completion. The fund is relocating from its current headquarters at the General Motors Building on Fifth Avenue.
The lease underscores the successful repositioning of 625 Madison Avenue. Related acquired the site from SL Green in December 2023 for more than $600 million, pivoting from an initially planned mixed-use development to focus on delivering a premium office tower that capitalizes on institutional investor appetite for high-quality Manhattan workspaces. The 1,200-foot building has now secured three major institutional anchors: General Atlantic signed for 150,000 square feet, Veritas Capital committed to 93,000 square feet, and Castle Hook Partners occupies the penthouse. Saudi Arabia's Public Investment Fund holds a two-thirds stake in the 860,000-square-foot development, having committed approximately $200 million to the project as part of the stake acquisition disclosed in 2025.
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