Vornado Realty Trust and Rudin Management have formally agreed to enter into a joint venture with an affiliate of Ken Griffin to develop a 1.9-million-square-foot trophy office building at 350 Park Avenue. The joint venture will be owned 60% by Griffin, 36% by Vornado and 4% by Rudin.

The project is budgeted at approximately $6.2 billion, of which $3.3 billion will be financed through a construction loan. Citadel, the hedge fund where Griffin serves as founder and CEO, will lease 1.05 million square feet for 15 years as its primary New York office.

Vornado will serve as the developer, operating member, property manager and leasing agent. Vornado and Griffin's affiliate will be the co-managing members and have joint control over decisions.

The arrangement formalizes a deal originally forged in 2024. On Vornado's recent second-quarter earnings call, chairman and CEO Steven Roth dismissed claims from analysts that the REIT would be better off walking away from the project.

"In our business, there is no better place to invest than prime Park Avenue with a million-square-foot tenant and a 60% partner already committed," Roth said.

Griffin's 60% stake implies an equity commitment of roughly $1.74 billion, assuming the $6.2 billion total cost is split proportionally between the $3.3 billion construction loan and $2.9 billion in equity. Vornado's 36% share would represent approximately $1.04 billion in equity.

The development will rise in Midtown Manhattan, a submarket where trophy properties have commanded premium rents but where overall office fundamentals remain uneven. Citadel's 15-year lease provides the project with an anchor tenant from inception.

Rudin Management's 4% stake, or roughly $116 million in equity at proportional allocation, gives the firm a minority position in the venture. The partnership structure centralizes development and leasing responsibilities with Vornado while splitting decision-making authority between Vornado and Griffin's affiliate.