New York — Plans for a major office tower in Midtown Manhattan backed by billionaire investor Ken Griffin are moving ahead despite an ongoing public dispute with New York City Mayor Zohran Mamdani, according to executives involved in the development. The project at 350 Park Avenue has entered the demolition phase and remains on track, with Citadel serving as the anchor tenant.
The development is a partnership between Griffin's Citadel, Vornado Realty Trust, and the Rudin organization. During the company's latest earnings call, Vornado CEO Steven Roth said demolition work is underway and confirmed the real estate firm intends to exercise its option to increase its ownership stake in the project. Citadel is expected to lease approximately one million square feet in the new skyscraper.
The project has drawn attention in recent months after a public disagreement between Griffin and Mayor Mamdani over the mayor's proposed tax on high-value second homes. Mamdani promoted the proposal in a video filmed outside Griffin's Manhattan penthouse, citing the billionaire's property as an example of a luxury residence that would be affected by the tax.
Griffin criticized the video, describing it as inappropriate and expressing concern that it unnecessarily highlighted his residence. The exchange fueled speculation that Citadel might reconsider its investment in New York as the firm continues expanding its operations in Miami.
Despite the political tensions, Vornado executives indicated the office development remains a priority. Company officials said the project is expected to generate thousands of construction jobs and create a significant number of permanent positions once completed, while adding premium office space to Midtown Manhattan's commercial district.
The proposed tower is expected to become one of New York City's tallest office buildings and is designed to accommodate large corporate tenants seeking modern workspace. Developers have expressed confidence in demand for high-end office properties despite broader challenges facing the commercial real estate market.
The continuation of the project suggests that, for now, the high-profile dispute between City Hall and one of the nation's best-known hedge fund managers has not altered plans for one of Manhattan's largest commercial real estate developments. While debate over tax policy and New York's business climate continues, construction preparations at the site are moving forward as scheduled.
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