Vornado Realty Trust, Rudin Management and an entity affiliated with Citadel founder Ken Griffin have agreed to form a joint venture to redevelop 350 Park Avenue in Manhattan into a 1.9 million-square-foot trophy office tower, with Citadel signing on as the anchor tenant under a 15-year lease, the companies announced Tuesday.
The project carries an estimated $6.2 billion development budget, according to Vornado’s announcement. Griffin’s entity will hold 60% of the venture, Vornado 36% and Rudin Management 4%. The joint venture and an associated $3.3 billion construction loan are expected to close in the third quarter of 2026.
Citadel anchors as its primary New York office
Citadel Enterprise Americas LLC will occupy 1.05 million square feet at 350 Park Avenue under the 15-year lease, making the tower its primary New York City office. Vornado will serve as developer, operating member, property manager and leasing agent for the project, earning customary fees, while sharing joint control of the venture with Griffin’s entity as co-managing member.
Vornado is contributing $500 million in land value to the venture and expects to make roughly $400 million in additional capital contributions over the course of construction.
Part of Vornado’s broader Park Avenue push
The deal extends Vornado’s concentration of holdings in Manhattan’s Plaza District, where the company already owns interests in 280 Park Avenue and Park Avenue Plaza, along with multiple Fifth Avenue properties. RealtyWire reported last week that Vornado had acquired a 49% interest in Park Avenue Plaza at a $1.1 billion valuation as part of its second-quarter results, which also showed Manhattan office rents and occupancy climbing.
The 350 Park Avenue project also lands amid a broader wave of corporate office commitments in Midtown Manhattan. RealtyWire recently covered Capital Group’s roughly $38 million expansion at Rudin-owned 345 Park Avenue, part of a Manhattan office leasing market that Colliers data showed up 28% year over year in July.
What it means
Verified facts: Vornado’s own announcement confirms the three-party ownership structure, the $6.2 billion development budget, the $3.3 billion construction loan, Citadel’s 15-year anchor lease covering 1.05 million square feet, and a targeted third-quarter 2026 closing.
RealtyWire analysis: A single tenant pre-committing to more than half a trophy tower’s square footage before construction financing even closes is a strong signal of confidence in Midtown’s office recovery β a dynamic that stands in contrast to the persistent vacancy struggles in lower-tier Manhattan office product. Griffin’s majority equity stake also reflects a growing pattern of large financial firms taking direct ownership positions in the real estate that houses them, rather than simply signing leases, giving them more control over the asset’s long-term value.
What to watch
The joint venture and construction loan are expected to close in the third quarter of 2026, which will be the next concrete milestone confirming the financing is in place. Design and construction timelines for the tower were not disclosed in Tuesday’s announcement.
