Ken Griffin Moves to Control 350 Park to Develop Midtown Office Tower

Key Points

• Ken Griffin will acquire at least 60 percent of the 350 Park Ave development venture.
• The plan calls for a 62-story, 1.85 million square foot Midtown office tower anchored by Citadel.
• Vornado and the Rudin Family must decide by July whether to join the JV or sell for $1.2 billion.

What Happened

Citadel founder Ken Griffin is taking majority control of the joint venture that would develop 350 Park Avenue in Midtown Manhattan. The update was disclosed during Vornado Realty Trust’s fourth quarter 2025 earnings. Griffin exercised an option to acquire at least a 60 percent stake in the venture. Vornado and the Rudin Family now have the choice to acquire between 23 and 40 percent of the project or sell the assembled site to Griffin for $1.2 billion. For New York office landlords, this is one of the most significant development bets currently on the table.

The Tower Plan

The proposed project would combine 350 Park Ave with 39 East 51st Street and 40 East 52nd Street into a single development site. The result would be a 62-story, 1,850,000 square foot supertall office tower. Citadel is expected to anchor the building, and according to Vornado CEO Steven Roth, the firm’s appetite for space has grown since the original agreement. That detail matters. In a market defined by tenant downsizing, expansion from a major hedge fund signals confidence in top tier product.

A Flight to Quality Bet

This development is a direct play on Midtown’s flight to quality trend. Trophy office towers with new systems, high ceilings, and premium amenities continue to outperform aging inventory. Griffin’s move suggests long-term conviction in Park Avenue as a global business address. If Citadel expands its footprint beyond the initial commitment, it strengthens the tower’s leasing profile and financing prospects. In today’s office market, scale and sponsorship matter. A well-capitalized developer with a committed anchor tenant changes the underwriting equation.

The $1.2B Decision

Vornado and the Rudin Family must now determine whether to stay in the deal or monetize the site. Selling for $1.2 billion would provide immediate liquidity and de-risk development exposure. Staying in offers long-term upside in what could become one of Midtown’s most prominent new towers. For public REIT investors, this is a capital allocation moment. For private landlords, it reinforces a core theme. Capital is still chasing best-in-class assets in elite corridors.

Investor Takeaway

Ken Griffin is not retreating from the Manhattan office. He is doubling down on it. While the commodity office struggles, demand for premier, newly built space remains durable among top-tier tenants. The 350 Park project could become the next defining address in Midtown. The July deadline will determine ownership structure, but the message is already clear. Trophy office is separating from the pack, and deep-pocketed sponsors are willing to build through the cycle.