Office Towers Project at 350 Park Stalls Over NYC Tax Fight

Office towers project at 350 Park faces uncertainty as Citadel casts doubt amid New York’s proposed tax plan targeting wealthy residents.

April 28, 2026

Nina Dale

Citadel voices concern over New York’s proposed taxes on wealthy residents.
The future of the 350 Park office towers project remains uncertain.
Citadel highlights its significant tax contributions to New York.
Increased taxation could impact high-income resident retention and new development.

Key Takeaways

Citadel Signals Doubt on Office Towers Project

According to CoStar, global investment firm Citadel warned its planned redevelopment of the 350 Park Avenue office towers may not move forward. The concern comes as debate intensifies over New York’s proposed tax increases on wealthy residents. Citadel is now pushing back against the city’s policy direction.

In an internal memo sent to more than 2,500 New York employees, Chief Operating Officer Gerald Beeson criticized Mayor Zohran Mamdani and his pied-à-terre tax proposal. As a result, the firm signaled it may reevaluate key investments. That includes the $6B 350 Park redevelopment project.

High-Profile Tax Debate and Real Estate Concerns

Mayor Mamdani proposed higher taxes on nonresident luxury homeowners and high earners. The proposal draws attention to figures like Ken Griffin. Beeson pushed back on the proposal and defended Citadel’s impact. He said the firm’s principals and employees paid nearly $2.3B in city and state taxes over five years. Those payments support essential public services across the region.

The 1.85M KSF 350 Park office towers project, backed by Citadel, Vornado Realty Trust, and Rudin, was expected to start construction in April. Beeson now stresses that moving forward is contingent on the broader policy environment. The firm also anchors the nearby 425 Park Ave. tower. This caution comes as major tenants continue to secure large-scale commitments in prime Midtown assets, including a recent half-million-square-foot lease at a flagship Fifth Avenue tower, reinforcing demand for top-tier space despite policy uncertainty.

Why Citadel’s Investment Matters

Citadel’s involvement in office towers development brings thousands of construction and permanent jobs to Midtown. However, leaders warn that high taxes could undermine New York’s competitiveness, echoing concerns recently voiced by JPMorgan Chase CEO Jamie Dimon and cited by the Citizens Budget Commission.

The outcome of this tax debate could have lasting effects on future office towers development and on New York’s ability to retain high-income residents who contribute significantly to city and state revenue.