Vornado, Citadel Move Forward on 1.85M SF Supertall at 350 Park Avenue

Key Points

• Vornado Realty Trust is preparing to break ground on 350 Park Avenue, a 1.85 million square foot office tower.
• Citadel will own 50 to 60 percent, with Rudin taking a minority stake.
• Construction is slated to begin in April 2026, following City Council approval last year.

Capital Stack Taking Shape

Vornado is finalizing the ownership structure for the Park Avenue supertall, which will rise between East 51st and 52nd streets. Citadel’s exact stake is still being negotiated and will depend on how much space it ultimately occupies as an anchor tenant. Vornado is expected to retain between 20 and 36 percent ownership, creating a partnership structure that significantly reduces balance sheet exposure while maintaining long term upside. According to President and CFO Michael Franco, the REIT’s balance sheet already accounts for the cost to build and finance the project.

Trophy Office Bet

The tower is being positioned as a top-tier, next-generation office asset capable of commanding some of the highest rents in Manhattan. Leadership described it as potentially “the best building in the city,” underscoring confidence in premium Park Avenue demand despite broader office softness. The City Council approved the project in September 2025, clearing a major entitlement hurdle.

Broader Development Pipeline

350 Park is part of what Vornado calls the “best development program in town,” which also includes:

• Penn 15, the former Hotel Pennsylvania site
• 623 Fifth Avenue, a 383,000 square foot repositioning play acquired for $218 million

Vornado is currently evaluating anchor tenant interest at Penn 15 while repositioning 623 Fifth into boutique office space.

Why It Matters

While much of the national office market remains challenged, trophy, best-in-class product in prime corridors continues to attract capital and tenants. Citadel’s majority stake and anchor tenancy significantly de-risk lease up and financing. For institutional investors, 350 Park underscores a clear trend: capital is concentrating in ultra prime, large block office developments backed by blue chip tenants, not commodity space. The takeaway is straightforward. Manhattan office development is not dead. It is simply becoming more selective, partnership-driven, and tenant-led