Agreement Opens Door to Construction of 1.7M-sf Trophy Office Tower in Midtown East

Initial reports back in June of ongoing conversations between landlords Vornado Realty Trust, Rudin Management, and investment firm Citadel have led to the December 9, 2022 announcement of an agreement between the landlords and Citadel Enterprise Americas LLC (“Citadel”) and an affiliate of Kenneth C. Griffin, Citadel’s Founder and CEO (“KG”). While the “effectiveness of the agreements is subject to the receipt of third-party approvals which the parties expect to receive within the next 35 days,” if the series of transactions move ahead as planned, it will lead to the construction of a new 1.7 million-square-foot office tower in Midtown East on the site comprised of existing buildings separately owned by Vornado at 350 Park Avenue and Rudin at 40 East 52nd Street, and 39 East 51st Street, with KG becoming an investor via a joint venture.