It's official: Hedge fund titan Bill Ackman is moving Pershing Square Capital to a new neighborhood.
His firm next year will take up residence in a West Side building, part of an area of Manhattan that's being transformed into an office and restaurant hub. The new digs will put Ackman in a 67,000-square-foot space at 787 11th Ave., between 54th and 55th streets.
The move has been expected for a while, but the lease finalization was announced Wednesday by the Georgetown Company, which has secured a $349.5 million construction loan and is partnering with Ackman on the deal. Pershing's relocation likely will be complete by late 2017.
Ackman's firm is now at 888 Seventh Ave., south of Central Park and in an office that provides a panoramic view of the city. The new property comes with a lower rent that will help the firm save money, a source familiar with the matter said.
"Hell's Kitchen is a great live, work, play community with wonderful restaurants, services, transportation options and entertainment," Adam Flatto, CEO of The Georgetown Company, said in a statement. "This is a neighborhood that will continue to grow and we're pleased to welcome Pershing Square to the building."
There are big plans for the building, which sits across the street from Dewitt Clinton Park and about a block from Hudson River Park, a popular getaway and exercise area for New Yorkers. The upper levels are being transformed into modern offices with oversized floor plans, 24-foot-high ceilings in certain areas and a 12,000-square-foot rooftop amenity, according to Georgetown.
It's been a rough year for Ackman. His $10.5 billion fund is off by 22.5 percent in 2016 after another losing month in October, which saw a 4.5 percent decline, according to company documents. Hedge funds broadly were up 4.2 percent through September, as measured by the HFRI Fund Weighted Composite Index.
Pershing Square did not respond to a request for comment.
New York's actual Pershing Square lies at the intersection of Park Avenue and 42nd Street, under the Pershing Square Viaduct across from Grand Central Station.