Plans for a $4.5 billion skyscraper at 350 Park Avenue, intended as the new headquarters for Ken Griffin's Citadel companies, will proceed as scheduled, according to Steven Roth, CEO of Vornado Realty Trust, a key development partner.
Roth announced during Vornado's second-quarter earnings call that the joint venture agreement among Vornado, Griffin, and minority partner Rudin is expected to close in September. A construction loan of $3.3 billion is already secured for the 1.8 million-square-foot tower, which is designed by Foster + Partners and will reach 1,600 feet in height. Citadel and Citadel Securities are slated to occupy approximately 850,000 square feet in the new building. Demolition of the existing structures at 350 Park Avenue and 40 East 52nd Street is currently underway.
The project's future had been cast into doubt in April when New York City Mayor Zohran Mamdani publicly criticized Griffin's ownership of a $200 million condominium. Following this criticism, Griffin indicated that his company's participation in the 350 Park Avenue development was "under review" and suggested an increased focus on Miami. "We have a $3.3 billion construction loan ready to go," Roth stated, adding that "all the partners" are "contemplating" a potential sale of a 25% interest at a price that would yield an appropriate profit, a common practice in large-scale new developments.
Manhattan's office market has seen a strong recovery in the first half of 2026, on track for its most robust leasing year since before the pandemic, with new occupancy and rent peaks recorded. Roth also confirmed that Vornado has no plans to sell the former Pennsylvania Hotel site, describing it as "the best development site" in Manhattan.