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Citadel nears $3.3B Park Avenue tower loan as lease footprint grows
Citadel and Citadel Securities plan to take 1.0M SF in the 62-story, 1.9M SF tower at 350 Park Ave., up from a prior 850K SF commitment.
Citadel founder Ken Griffin, along with co-owners Vornado Realty Trust and the Rudin family, is close to securing a $3.3B construction loan for a new Park Avenue office tower at 350 Park Ave., according to Bisnow.
Vornado CEO Steven Roth said on an analyst call that Citadel and Citadel Securities agreed to move their New York City offices to the building and that the hedge fund footprint is expanding to 1.0 million square feet, compared with an earlier 850,000 square feet commitment. The debt was characterized by Roth as likely the largest single-building construction loan in New York City history, though a Citadel spokesperson confirmed the project details without adding further comment.
Roth also outlined the ownership structure for the project: Vornado plans to exercise an option to own 36% of 350 Park, with Griffin owning 60% and Rudin holding 4%. The development, expected to close in September, involves demolishing existing buildings on the site for a 62-story skyscraper totaling 1.9 million square feet, with top floors reserved for third-party companies that could be leased at roughly $350 per square foot.
Bisnow reports that Vornado is positioned to benefit from improving New York City office demand, with occupancy rising from 84.4% in the first quarter of 2025 to 92.2% by the end of June, and net operating income in its NYC portfolio up nearly 12%. Roth said the vacancy rate in the city’s 180 million square feet of Class-A office space is just over 6%.