Key Takeaways
- • Vornado, Ken Griffin and Rudin formally closed their joint-venture agreement to build 350 Park Avenue, a 66-story, 1,400-foot skyscraper between East 51st and East 52nd streets in Midtown Manhattan, according to the New York Post.
- • The partners closed a $3.3 billion construction loan, believed to be the largest for a single building in New York City's history.
- • Citadel Enterprise Americas will anchor the 1.9 million square-foot project with a 1.5 million square-foot lease, leaving roughly 850,000 square feet on the upper floors to be marketed to other tenants.
- • A Griffin affiliate holds a 60% majority stake in the joint venture, Vornado owns 36% and Rudin owns 5%.
- • Completion of the Foster + Partners-designed tower is estimated for 2032.
Summary
Vornado, Ken Griffin and Rudin announced they have formally closed on their joint-venture agreement to develop 350 Park Avenue, a 66-story, 1,400-foot tower in Midtown Manhattan between East 51st and East 52nd streets. The announcement follows months of speculation about the project, according to the New York Post.
The JV partners also closed on a $3.3 billion construction loan, which the Post reports is believed to be the largest for a single building in the city's history. Vornado CEO Steve Roth had said on a recent earnings call that a construction loan was "ready to go" but did not name the lenders. The lenders are Wells Fargo Bank, JP Morgan Chase Bank, National Association, Bank of America, BMO Bank, ING Capital, PNC Bank and Standard Chartered Bank.
Citadel Enterprise Americas, an entity that provides shared infrastructure and support services to Citadel and Citadel Securities, will anchor the 1.9 million square-foot project with a 1.5 million square-foot lease. The remaining 850,000 square feet on the highest floors will be marketed to other tenants. Ownership is split with a Griffin affiliate holding 60%, Vornado 36% and Rudin 5%.
The project's size and height were made possible by the Greater East Midtown rezoning. The partners acquired development rights from St. Patrick's Cathedral and Saint Bartholomew's Church and will contribute a total of $150 million toward the maintenance of both, plus more than $35 million to the East Midtown Public Realm Improvement Fund. The building will feature ground-floor food and beverage facilities, a 40-foot-tall glass lobby and 16-foot floor-to-ceiling windows.
The Post noted that fears had lingered that the deal could falter following Mayor Zohran Mamdani's video attack on Griffin over his ownership of a $230 million condominium. The closing suggests the project has proceeded despite that controversy. Completion is estimated for 2032.
The JV partners also closed on a $3.3 billion construction loan, which the Post reports is believed to be the largest for a single building in the city's history. Vornado CEO Steve Roth had said on a recent earnings call that a construction loan was "ready to go" but did not name the lenders. The lenders are Wells Fargo Bank, JP Morgan Chase Bank, National Association, Bank of America, BMO Bank, ING Capital, PNC Bank and Standard Chartered Bank.
Citadel Enterprise Americas, an entity that provides shared infrastructure and support services to Citadel and Citadel Securities, will anchor the 1.9 million square-foot project with a 1.5 million square-foot lease. The remaining 850,000 square feet on the highest floors will be marketed to other tenants. Ownership is split with a Griffin affiliate holding 60%, Vornado 36% and Rudin 5%.
The project's size and height were made possible by the Greater East Midtown rezoning. The partners acquired development rights from St. Patrick's Cathedral and Saint Bartholomew's Church and will contribute a total of $150 million toward the maintenance of both, plus more than $35 million to the East Midtown Public Realm Improvement Fund. The building will feature ground-floor food and beverage facilities, a 40-foot-tall glass lobby and 16-foot floor-to-ceiling windows.
The Post noted that fears had lingered that the deal could falter following Mayor Zohran Mamdani's video attack on Griffin over his ownership of a $230 million condominium. The closing suggests the project has proceeded despite that controversy. Completion is estimated for 2032.
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