Billionaire hedge fund founder Ken Griffin, Vornado Realty Trust and Rudin have finalized a joint venture to develop a 66-story Manhattan office skyscraper, securing a $3.3 billion construction loan for the project.
Vornado announced Wednesday that it had finalized the joint venture with Griffin and New York real estate firm Rudin to develop the 1.9 million-square-foot tower at 350 Park Avenue. Under the joint venture, an affiliate of Griffin, the founder and CEO of Citadel, will own 60% of the project, while Vornado will hold a 36% stake and Rudin will retain the remaining 4%.
Citadel Enterprise Americas LLC has signed a lease for 1.05 million square feet of office space in the skyscraper, representing more than half of the building’s planned office space, according to Vornado.
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The project moves forward despite a feud earlier this year between Griffin and New York City Mayor Zohran Mamdani.
The controversy started in April, when Mamdani recorded a video in front of Griffin’s penthouse, calling him out as a wealthy hedge fund owner who would be subject to the mayor’s pied-à-terre tax, which is levied on high-value residential properties whose owners don’t live in the city full-time. The tax took effect in July.
Griffin responded, calling the personal attack “creepy and weird,” saying that it put him in harm’s way and demonstrated a “profound lack of judgment” on Mamdani’s part.
Citadel executives later suggested that the new office space could become a casualty of Mamdani’s policies.
Mamdani eventually softened his rhetoric and thanked Griffin for his contributions to the city.
The multibillion-dollar construction loan will be provided by seven financial institutions, including Wells Fargo, JPMorgan Chase, Bank of America, BMO Bank, ING Capital, PNC Bank and Standard Chartered Bank.
Construction of the tower is already underway, Vornado said.
Designed by architecture firm Foster + Partners, the skyscraper will rise approximately 1,400 feet above Park Avenue and feature luxury amenities. Roughly 850,000 square feet of office space on the building’s upper floors will be available for lease.
The development also includes financial contributions tied to New York City’s Greater East Midtown rezoning initiative.
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According to Vornado, the project will contribute a combined $150 million toward the maintenance of St. Patrick’s Cathedral and Saint Bartholomew’s Church through the purchase of development rights.
FOX Business’ Eric Revell contributed to this report.
