Vornado Realty Trust and Rudin Management have finalized plans to form a joint venture with an affiliate of Kenneth C. Griffin, founder and CEO of Citadel, to deliver a new 1.9-million-square-foot trophy office tower at 350 Park Avenue. Under the agreement, Citadel will commit to a 15-year lease for 1.05 million square feet, designating the property as its primary New York office once completed.
The joint venture ownership structure allocates a 60% stake to Griffin’s affiliate, 36% to Vornado and 4% to Rudin. The partners have set a project budget of approximately $6.2 billion, supported in part by a construction loan totaling about $3.3 billion. Equity for the remaining capital is being provided through the joint venture partners’ ownership commitments.
Vornado will take on multiple roles for the development, serving as the project’s developer, operating member, property manager and leasing agent. Governance of the venture will be shared, with Vornado and Griffin’s affiliate acting as co-managing members and maintaining joint control over major decisions affecting the project.
The large pre-lease to Citadel secures more than half of the building’s planned office area prior to construction completion, positioning the tower as a heavily pre-committed asset. The structure is being marketed as a high-end, trophy-caliber property intended to serve as a flagship office location in a prime Park Avenue corridor.
On Vornado’s recent second-quarter earnings call, chairman and CEO Steven Roth addressed investor concerns about the economics and risk of the development, which was originally structured in 2024. Responding to suggestions that the company might benefit from stepping away from the transaction, Roth reiterated management’s conviction in the plan. He emphasized the strategic importance of the location and tenant commitment, stating that there is no better place for the firm to invest than prime Park Avenue with a million-square-foot tenant and a 60% equity partner already in place.
The agreement formalizes a major office development anchored by a long-term lease from a global financial institution, with Vornado leading execution and operations while sharing governance and capital responsibilities with Griffin’s affiliate and Rudin Management.
