Key Takeaways
- • Citadel's Ken Griffin, Vornado Realty Trust and Rudin closed on a joint venture to develop 350 Park Avenue, a 1,400-foot, 66-story skyscraper in Midtown Manhattan, according to The Real Deal citing the New York Post.
- • The joint venture closed on a $3.3 billion construction loan, a potentially historic sum for New York City, from a lender group including Wells Fargo, JPMorgan Chase, Bank of America, BMO Bank, ING Capital, PNC Bank and Standard Chartered Bank.
- • Griffin's firm will anchor the project, occupying more than 1 million square feet of the roughly 2 million-square-foot tower.
- • Griffin holds a 60 percent interest, Vornado holds 36 percent, and Rudin holds the remaining 4 percent; Vornado valued its contribution of the existing 65-year-old building and land at roughly $900 million.
- • Demolition is underway, with completion expected in 2032; rents are projected around $350 per square foot.
Summary
Citadel's Ken Griffin, Vornado Realty Trust and Rudin have closed on a joint venture to develop 350 Park Avenue, one of Manhattan's highest-profile office projects, according to The Real Deal, which cited the New York Post. The 66-story, 1,400-foot skyscraper will be anchored by Griffin's firm, which will occupy more than 1 million square feet of the roughly 2 million-square-foot property.
The joint venture closed on a $3.3 billion construction loan, a sum described as potentially historic for New York City. The loan volume had been reported previously, but the lender consortium was newly disclosed as Wells Fargo, JPMorgan Chase, Bank of America, BMO Bank, ING Capital, PNC Bank and Standard Chartered Bank. Demolition at the site is already underway, and completion is expected in 2032.
Ownership is split with Griffin holding a 60 percent interest, Vornado taking the maximum 36 percent stake it had said in August it would exercise, and Rudin owning the remaining 4 percent. The joint venture valued Vornado's contribution of the existing 65-year-old office building and underlying land at roughly $900 million, according to Vornado's Steven Roth. Roth has said brokers are fielding inquiries from prospective tenants seeking large blocks of premium office space timed to the building's delivery, with rents expected to hover around $350 per square foot.
The project's path was not without friction. Earlier this year Griffin provided a $400 million loan after taking his majority stake. Mayor Zohran Mamdani later criticized the hedge fund founder while announcing the city's pied-a-terre tax, prompting Griffin to threaten to walk away from the project. The partners had filed permit applications late last year after the City Council approved rezoning of the site, and the dispute ultimately did not derail the development.
The joint venture closed on a $3.3 billion construction loan, a sum described as potentially historic for New York City. The loan volume had been reported previously, but the lender consortium was newly disclosed as Wells Fargo, JPMorgan Chase, Bank of America, BMO Bank, ING Capital, PNC Bank and Standard Chartered Bank. Demolition at the site is already underway, and completion is expected in 2032.
Ownership is split with Griffin holding a 60 percent interest, Vornado taking the maximum 36 percent stake it had said in August it would exercise, and Rudin owning the remaining 4 percent. The joint venture valued Vornado's contribution of the existing 65-year-old office building and underlying land at roughly $900 million, according to Vornado's Steven Roth. Roth has said brokers are fielding inquiries from prospective tenants seeking large blocks of premium office space timed to the building's delivery, with rents expected to hover around $350 per square foot.
The project's path was not without friction. Earlier this year Griffin provided a $400 million loan after taking his majority stake. Mayor Zohran Mamdani later criticized the hedge fund founder while announcing the city's pied-a-terre tax, prompting Griffin to threaten to walk away from the project. The partners had filed permit applications late last year after the City Council approved rezoning of the site, and the dispute ultimately did not derail the development.
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