Vornado Prepping Balance Sheet to Break Ground on 350 Park Avenue

Vornado Realty Trust plans to hit the ground running on the redevelopment of 350 Park Avenue after reporting strong earnings in the fourth quarter of 2025.

Vornado will build 1.85 million square feet of office with Ken Griffin’s Citadel owning a 50 to 60 percent stake in the project, Rudin taking a minority stake, and Vornado itself holding between 20 to 36 percent, according to President and Chief Financial Officer Michael Franco.

The New York City Council approved the construction of the supertall on Park Avenue between East 51st and 52nd streets in September 2025. Construction will begin in April.

The extent of Citadel’s ownership in the project is still being determined based on how much space in the building it will occupy as a tenant, and the size of its stake will influence how much rent it pays, Franco said in a Tuesday earnings call.

“When we finish [negotiations with Citadel] over the next few months, we will publish that, but I don’t wanna jump the gun just yet,” Franco said. “Needless to say, I think it’s gonna be an extremely attractive project. Economically, we think it’s going to be the best building in the city, and the space we’re gonna have is going to command the highest rents in the city.”

Vornado’s balance sheet expectations already take into account the cost to build and finance the project, Franco added.

Vornado touted having the “the best development program in town” with 350 Park as well as the development site for Penn 15, which used to be the historic — but not landmarked — Hotel Pennsylvania before it was demolished in 2022.

The real estate investment trust is evaluating anchor tenant requests for the Penn 15 site, Franco said Tuesday.

Its development pipeline also includes the 383,000-square-foot 623 Fifth Avenue, which it acquired for $218 million in September 2025 and plans to reposition into boutique offices.

Mark Hallum can be reached at mhallum@commercialobserver.com.