New York & Tri-State + Midtown New York + Office | December 12, 2022

Vornado, Rudin and Ken Griffin have entered into an agreement for three Midtown Manhattan office towers

Vornado, Rudin Enter Agreement on Midtown Manhattan Towers with Ken Griffin

(Updated with additional information)

Vornado Realty Trust and Rudin have reached agreements with Citadel Enterprise Americas LLC and with an affiliate of Citadel founder Ken Griffin on a series of transactions relating to 350 Park Ave. and 40 E. 52nd St.

Citadel will master lease Vornado’s 585,000-square-foot 350 Park Ave. office building on an “as is” basis for 10 years, with an initial annual net rent of $36 million. Citadel will also master lease Rudin’s adjacent 390,000-square-foot property at 40 E. 52nd St.

In addition, Vornado has entered into a joint venture with Rudin to purchase 39 E. 51st St. for $40 million. The JV would combine 39 E. 51st, 350 Park and 40 E. 52nd to create a development site valued at least $1.2 billion.

If Girffin exercises his option to acquire a 60% stake in the JV, then Vornado and Rudin would develop the site. Alternately, Griffin could acquire the site for $1.4 billion, with Vornado and Rudin no longer involved in developing it.

Fried Frank partners Jonathan Mechanic, Rob Sorin, Valerie Kelly, David Karnovsky, Lee Parks, Lisa Schneider, Brian Mangino and Libin Zhang represented Citadel.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).