Construction on Citadel’s planned 350 Park Avenue skyscraper in Midtown Manhattan is moving forward despite billionaire founder Ken Griffin’s months-long public feud with New York City Mayor Zohran Mamdani.
According to a Fox Business report published Wednesday, Vornado Realty Trust (NYSE:VNO) CEO Steven Roth said during the company’s second-quarter earnings call on Tuesday that demolition is underway at the site and that Vornado intends to exercise its option to increase its ownership stake in the project. Roth added that Citadel holds a 60% stake in the partnership, while Vornado’s ownership will increase to 36%
“If you drive or walk past Park Avenue at 52nd Street, you will see that our 350 Park Avenue site is now under construction, actually under demolition,” Roth said. He added that Vornado plans to participate in the project at its maximum ownership alongside Citadel, which will remain the building’s approximately 1 million-square-foot anchor tenant.
Project Moves Ahead Despite Earlier Uncertainty
The latest update marks a significant step for the development after Citadel previously warned it could reconsider the roughly $6 billion project amid political tensions surrounding Mamdani’s proposed pied-à-terre tax.
Citadel Chief Operating Officer Gerald Beeson said at the time the redevelopment was expected to create about 6,000 construction jobs, support more than 15,000 permanent jobs and represent more than $6 billion in investment.
The dispute began after Mamdani promoted his proposed tax on luxury second homes by filming a campaign video outside Griffin’s record-setting $238 million Manhattan penthouse. Griffin later called the video “creepy and weird” and questioned the mayor’s judgment.
Tax Debate Continues as Project Moves Forward
While the development remained uncertain, New York continued moving forward with the proposed tax. Last month, Mamdani announced the city had begun notifying owners of luxury second homes worth more than $5 million that the pied-à-terre tax was “coming soon,” saying the revenue would help fund parks, libraries and schools. The proposal has drawn criticism from business leaders, including Griffin, who has argued higher taxes could discourage investment and job creation in New York.
Days later, the rollout drew fresh scrutiny after a searchable property database sparked privacy concerns, though Mamdani defended it as the city’s complete property roll required under state law rather than a list targeting taxpayers. The policy has drawn criticism from business leaders, including Griffin, who has argued higher taxes could discourage investment and job creation in New York.
Griffin also renewed his criticism of New York’s business climate in July, saying high taxes and poor public services were pushing Wall Street firms to lower-tax states.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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