The Citadel founder opted this week to accelerate his bet on 350 Park Avenue, opting to take a 60 percent stake in the joint venture developing the 2 million-square-foot tower rather than wait for his original deadline to either buy the site outright or take control later. The move reshuffles the balance of power between Griffin and his partners, Vornado Realty Trust and Rudin Management, while accelerating one of Midtown’s most closely watched office projects.
Under a 2022 agreement, Griffin had until June 2030 to either acquire a majority stake in the company or purchase the site for $1.4 billion, which would have sidelined Vornado and Rudin from the development. Instead, he opted in December to now hold the 60 percent position, according to comments from Vornado President Michael Franco during the REIT’s fourth-quarter earnings call.
The decision also changes the original ownership division. Vornado and Rudin have until July to secure between 23 percent and 40 percent of the joint venture, with Vornado’s share ranging from 21 percent to 36 percent. Previously, Vornado stood at 36 percent and Rudin at 4 percent. Demolition is expected to begin in April, following city council approval of the rezoning and permit applications late last year.
Citadel, the anchor tenant, previously promised 850,000 square feet, but Vornado executives indicated the footprint could grow. CEO Steve Roth said the hedge fund is still finalizing its space needs, while Franco noted interest from tenants with leases expiring between 2031 and 2033 who are seeking just 50,000 square feet.
The accelerated timeline is a vote of confidence in a top Park Avenue product at a time when much of the office market remains divided. Griffin is doubling its trophy space as other landlords cut back, a high-stakes bet that demand for the best offices will outpace the broader market slump.
It’s Valentine’s Day weekend, which means it’s time to turn out the lights, pour a glass of pinot noir, and snuggle up with your loved one while you read the week’s top New York stories from The real deal.
Waldorf Astoria is hitting the market after an eight-year condo renovation
Dajia Insurance Group, a Chinese state-owned company, plans to sell the historic Waldorf Astoria property in Manhattan.
A lengthy renovation reduced the hotel portion to 375 rooms and created 372 condominium units, which would be sold separately, although the total property sale will include adjacent restaurants and shops.
The project, which started in 2017, has faced major disruptions, including the seizure of the original developer, Anbang Insurance Group, by the Chinese government.
Manocherian Brothers drive resi conversion despite Midtown South breakdown
The City Council’s rezoning of Midtown South carved out 37 Garment District properties, including a building at 257 West 39th Street, to preserve the area’s “unique cluster of businesses.”
Despite this exclusion, the owner of 257 West 39th Street is seeking a site-specific zoning change to allow for a partial residential conversion of the commercial building.
The Garment District Alliance opposed the carve-out, citing a nearly 30 percent vacancy rate in the excluded properties and arguing that the city is unnecessarily preventing housing and growth in an area well served by public transportation.
Jonathan Miller and Douglas Elliman are ending their data partnership after 32 years
Appraiser Jonathan Miller’s 32-year relationship with Douglas Elliman has come to an end. The final market report under the partnership was published on Thursday.
Miller, head of the Miller Samuel appraisal firm and an adjunct professor at Columbia, is shifting his focus to a new neighborhood-level housing index company called StreetMatrix.
The initiative, launched in partnership with economist Nick Huntington-Klein, provides data on market performance down to the number of bedrooms and neighborhood, aiming to provide a more detailed picture than traditional citywide housing indexes.
Tech took Manhattan office leases by storm in January
January was a good month for tech companies, judging by the number of leases they signed within the five boroughs of New York City. Of the top ten office leases in January, four were for technology companies and two of those were for AI platforms.
“My Very Rich Russians”: Insider Brokers’ Madness to Gain Access to Epstein’s Mansion
And finally, Jeffrey Epstein tightly controlled access to his Upper East Side mansion, arbitrarily rejecting offers and casting suspicion on potential buyers.
Emails show that brokers tried to gain access by naming ultra-rich individuals, often without success and in some cases using the names as bait.
Epstein never sold the property during his lifetime, seeking exorbitant prices (claiming to have turned down offers up to $250 million) and turned down a $125 million offer around 2010, indicating he was likely averse to selling.
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Citadel’s Ken Griffin takes a stake in 350 Park, set for demolition
Waldorf Astoria is hitting the market after an eight-year condo renovation
Manocherian Brothers drive resi conversion despite Midtown South breakdown
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