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Citadel affiliate, Vornado and Rudin JV to develop 350 Park Ave
Citadel will lease 1.05 million square feet for 15 years, and the project budget is about $6.2 billion with $3.3 billion planned via a construction loan.
Vornado Realty Trust and Rudin Management have agreed to form a joint venture with an affiliate of Kenneth C. Griffin, Citadel’s founder and CEO, to develop a 1.9-million-square-foot office building at 350 Park Ave in New York, according to ConnectCRE.
As part of the deal, Citadel will lease 1.05 million square feet for 15 years as its primary New York office. The venture will be owned 60% by Griffin, 36% by Vornado, and 4% by Rudin.
ConnectCRE reports the project is budgeted at approximately $6.2 billion, with about $3.3 billion financed through a construction loan. Vornado will act as the developer, operating member, property manager, and leasing agent, with joint control shared by Vornado and Griffin as co-managing members.
On Vornado’s recent second-quarter earnings call, chairman and CEO Steven Roth pushed back on analysts suggesting the REIT should walk away from the agreement that was originally forged in 2024, saying prime Park Avenue with an already committed 60% partner and a million-square-foot tenant is an attractive place to invest.