Vornado Realty Trust, Rudin and Ken Griffin Affiliate Close 350 Park Avenue Joint Venture With $3.3 Billion Construction Loan
Vornado Realty Trust (NYSE: VNO), Ken Griffin and Rudin announced Oct. 21 that they closed their joint venture for 350 Park Avenue in Manhattan, signed a 1.05 million-square-foot anchor lease with Citadel Enterprise Americas LLC and closed a $3.3 billion construction loan. Construction of the 66-story office tower is underway, the partners said.
350 Park Avenue Joint Venture Ownership and Structure
The joint venture is owned 60% by an affiliate of Ken Griffin, the founder and CEO of Citadel; 36% by Vornado Realty Trust; and 4% by Rudin. Vornado previously said it expects to contribute approximately $400 million of additional capital, in addition to a $500 million land contribution.
The estimated development budget is approximately $6.2 billion, meaning the $3.3 billion loan represents roughly 53% of the projected budget. On a per-square-foot basis, the budget equates to approximately $3,260 per planned square foot. That figure is a development-cost metric covering the broader project budget, not a sale price or valuation.
$3.3 Billion Construction Loan for Park Avenue Tower
The loan was provided by Wells Fargo Bank, N.A., JPMorgan Chase Bank, National Association, Bank of America, N.A., BMO Bank N.A., ING Capital LLC, PNC Bank and Standard Chartered Bank. In the announcement, the partners said the financing "represents a resounding vote of confidence in the state-of-the-art office tower and further solidifies Park Avenue as the world's premier office district."
Industry coverage has described the financing as potentially the largest single-building construction loan in New York City history.
Citadel Anchor Lease and Available Space
Citadel Enterprise Americas LLC leased 1.05 million square feet for 15 years to serve as its primary New York City office. The lease covers approximately 55% of the tower's planned 1.9 million square feet. About 850,000 square feet in the tower's high rise, which the partners said offers panoramic views, will be available to the market.
Tower Design and East Midtown Rezoning Contributions
Designed by Foster + Partners, the tower will rise approximately 1,400 feet across 66 stories and deliver more than 1.9 million square feet of office space and amenities. The site is at 350 Park Avenue in the East Midtown corridor, near East 51st and 52nd streets.
The partners said the project advances the goals of the Greater East Midtown rezoning. Through the purchase of development rights, it will contribute a combined $150 million for the maintenance of St. Patrick's Cathedral and Saint Bartholomew's Church, and it will provide more than $35 million for the city's East Midtown Public Realm Improvement Fund. The project was approved through New York City's Uniform Land Use Review Procedure in September 2025.
Market Context: Trophy Office Demand and Limited Supply
The project is launching into a bifurcated Manhattan office market. Trophy office vacancy in New York City was reported at 4.9%, below pre-pandemic levels, while newly constructed Midtown buildings were described as essentially fully leased. Older, less amenitized buildings face weaker demand and higher vacancy.
New supply is also limited. JLL projected annual New York office deliveries to fall from an average of 7.8 million square feet during 2018–2023 to approximately 1.5 million square feet through 2029. Citadel's commitment covers more than half of the planned office space before delivery, which reduces lease-up risk for the project.
The tower will compete with Manhattan's limited inventory of new trophy towers and recently redeveloped Park Avenue assets. The remaining 850,000 square feet is large enough to accommodate another major corporate headquarters or multiple financial-services tenants. The project also carries execution risk tied to delivering a 1.9 million-square-foot tower during a period of elevated construction and financing costs.
For Vornado Realty Trust, the venture provides exposure to a high-profile development without sole responsibility for its capital requirements. For Rudin, the 4% stake preserves participation in a project built around its East Midtown assets and development rights.
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