Eric Hadar’s bold vision turned Allied Partners into a major force in New York real estate. By acquiring the Citigroup Center, he seized a rare chance to own one of Midtown Manhattan’s most famous office towers, making Allied a real competitor among large institutions.
Hadar had a reputation for reviving challenging properties, such as converting Studio 54 into a Broadway theater and redeveloping 285 Lafayette while artist tenants remained in their homes. He was quick to act when the 59-story, 1.6 million-square-foot Citigroup Center went up for sale. He recognized its full occupancy, global reputation, and strong tenants as important for steady income and long-term value in Midtown.
The deal was complicated. Allied Partners competed with five big buyers, faced unclear office demand, and had to complete a purchase worth between $725 and $755 million. Because of the deal’s size, they had to bring in new investment partners and mortgage lenders.
Hadar said that using a bold, step-by-step plan, “Allied Partners’ 1% chance to acquire Citigroup became a reality.” To win, he made an early joint offer to Boston Properties, combining Allied’s flexibility with Boston’s size. He also secured a $525 million loan from Deutsche Bank and used various investments to manage risk and keep everyone’s goals aligned.
His plan worked! Allied Partners bought the Citigroup Center for about $725 million, while Boston Properties handled leasing and property management. Boston’s smooth operations, focus on high-quality tenant service, and targeted retail efforts helped keep the tower’s top status and steady income by keeping occupancy, tenant quality, and market position strong.
Buying the Citigroup Center supported Allied’s growth plan, which depended on creative ideas and smart money management. Along with Hadar’s bold approach and careful work, the deal strengthened Allied Partners’ reputation among New York’s real estate leaders.