Vornado Realty Trust and Rudin Management have formally agreed to enter into a joint venture with an affiliate of Kenneth C. Griffin, Citadel’s founder and CEO (KG), to develop a 1.9-million-square-foot trophy office building at 350 Park Ave. In connection with the development, Citadel will lease 1.05 million square feet for 15 years as its primary New York office.
The JV will be owned 60% by KG, 36% by Vornado and 4% by Rudin. The project is budgeted at approximately $6.2 billion, of which $3.3 billion will be financed through a construction loan.
Vornado will serve as the developer, operating member, property manager and leasing agent. Vornado and KG will be the co-managing members and have joint control over decisions.
On Vornado’s recent second-quarter earnings call, chairman and CEO Steven Roth dismissed claims from analysts that the REIT would be better off walking away from the deal, originally forged in 2024. “In our business, there is no better place to invest than prime Park Avenue with a million-square-foot tenant and a 60% partner already committed,” he said.
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