- Vornado Realty Trust, Citadel and Rudin secured $3.3 billion for the planned 2 million-square-foot 350 Park Avenue tower.
- Citadel will anchor about half the project, while Vornado plans a 36% stake and Rudin 4%, with another 25% potentially available to an outside investor.
- The financing reinforces a two-tier New York office market in which trophy properties can attract capital while older buildings face a much higher financing hurdle.
350 Park Avenue is moving forward with one of New York’s largest construction loans, giving the city’s office sector a notable vote of confidence despite the market’s uneven recovery, according to The Real Deal. Vornado Realty Trust, Citadel and Rudin secured $3.3 billion for the planned 2 million-square-foot tower, according to Vornado CEO Steven Roth’s second-quarter 2026 earnings call.
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The financing matters because lenders are still willing to fund new office construction at scale. But they want strong tenants, prime locations and a clear path to demand.
A rare financing vote for New York office
The 350 Park Avenue deal stands apart from the typical Manhattan office project. Citadel, led by Ken Griffin, plans to occupy roughly half of the tower. That gives the project a major creditworthy anchor before construction is complete.
Demand is also shifting toward newer buildings with better amenities. As a result, 350 Park is not a broad vote of confidence in New York office. Instead, it shows how much capital remains available for the market’s best assets.
The details: $3.3B for 2 million square feet
The $3.3 billion construction loan covers roughly half of the project’s estimated $6 billion cost. Vornado plans to hold a 36% stake. Rudin will own 4%, while Citadel will anchor the project.
The partners are also considering selling another 25% stake to an outside investor. Rents at the tower could approach $350 per square foot. That would put the project firmly at the top of Manhattan’s office market.
The loan also stands out against other recent Manhattan financings. Tishman Speyer’s Spiral secured $1.8 billion. Related Companies and Oxford Properties secured $1.6 billion for 70 Hudson Yards.
Trophy assets are separating from the pack
The 350 Park financing reflects a wider split in New York office. Prime buildings with modern features, strong locations and creditworthy tenants continue to attract demand.
Older and less differentiated buildings face a tougher market. They must contend with weaker leasing demand and tighter financing conditions.
Vornado’s decision to retain a large ownership stake reinforces that view. On the company’s second-quarter 2026 earnings call, CEO Steven Roth said there was “no better place to invest than prime Park Avenue.” His comments signal that Vornado sees more value in owning the asset than selling down its position.
Why it matters: Capital is available — selectively
350 Park offers lenders several advantages. Citadel has already committed to a large portion of the building. The project also sits on one of Manhattan’s strongest office corridors.
The tower is targeting rents near the top of the market. Those factors help explain why lenders were willing to commit $3.3 billion despite broader challenges in office financing.
The takeaway is simple: Capital is still available for office. But investors want exceptional fundamentals before putting billions behind a new project.
What’s next: Watch the tenant and equity pipeline
The next milestones are leasing activity, the potential sale of the additional 25% stake and the tower’s ability to achieve rents near $350 per square foot.
Strong leasing and new institutional equity could encourage more trophy-office development in Manhattan. Still, 350 Park should not be viewed as a green light for the broader office pipeline. Its prime Park Avenue location and unusually strong tenant profile are what make the project financeable.
