Citadel Takes Stake in Vornado’s 350 Park Avenue

Citadel’s Ken Griffin decided to take a 60 percent stake in the joint venture that will transform 350 Park Avenue.

Vornado Realty Trust’s Michael Franco on Tuesday said that Griffin wanted to accelerate the deal timeline, which originally gave him until June 2030 to either take a 60 percent stake or purchase the site for $1.4 billion, meaning that Vornado and Rudin Management would not take part in the development.

Griffin chose the former in December, and thanks to a few other amendments to a 2022 agreement, Vornado and Rudin will be able to acquire an interest between 23 percent and 40 percent in the joint venture by July (with Vornado’s stake ranging between 21 and 36 percent). The previous terms called for Vornado to take a 36 percent interest, and Rudin 4 percent. Demolition for the project is slated to start in April to make way for a new 2 million-square-foot office tower.

“We intend to be part of this project,” Franco said during Vornado’s fourth-quarter earnings call on Tuesday.

Vornado executives also indicated that Citadel, the tower’s anchor tenant, may take more space than the previously announced 850,000 square feet.

“The Citadel team is still making up their mind as to what exactly their requirements are,” Vornado CEO Steve Roth said in response to an analyst’s question. Franco added that the company is seeing interest from companies with leases expected to expire between 2031 and 2033 who are looking for as little as 50,000 square feet.

The partners filed permit applications for the project late last year, after the City Council approved rezoning the site.

Vornado executives also provided an update on other redevelopment projects. Last month, the real estate investment trust acquired 3 East 54th Street for $141 million, with plans to demolish the existing office building on the site. Roth said the REIT is considering options for the site, but noted that “the location is excellent for hotel, office and residential uses.” Roth repeatedly said he is “in love” with 623 Fifth Avenue, an office building it bought for $218 million last year. The company plans to reposition the building as the “220 Central Park South of boutique office” by the end of 2027.

Funds from operations during the fourth quarter were $110.9 million, or 55 cents per share, compared to $122.2 million, or 61 cents per share, during the same period in 2024. For the year, FFO was $465 million, or $2.32 per share, up from 2024’s $447 million, or $2.26 per share.

Roth acknowledged that the REIT’s stock price has been struggling, but said “there is a huge disconnect between our stock price and the value of our assets.” One year ago, to the day, Vornado’s stock price was about $42 per share, but it hasn’t reached above $40 since October, and as of noon on Tuesday, was just below $32.

The REIT’s board authorized a stock buyback in 2023 and repurchased nearly 1.5 million common shares in 2025 for $50.9 million, at an average price of $34.9 per share.

“I am certainly aware of the recent decline in our stock and, in fact, the decline in all real estate stocks,” Roth said. “In our case, the decline was in the face of the best fundamentals in Manhattan in the last 20 years. While this most likely represents a great buying opportunity, we will proceed with care, looking over our shoulder.”

He said if the disconnect continues, Vornado will “become more aggressive.”