Ken Griffin, Vornado Realty Trust and Rudin have secured a $3.3 billion construction loan for a new office tower on Manhattan's Park Avenue. The developers tapped a group of lenders led by Wells Fargo & Co. and JPMorgan Chase & Co. for the financing, according to a statement Wednesday.
The project's future was clouded earlier this year after New York Mayor Zohran Mamdani provoked Griffin's ire. Citadel Chief Operating Officer Gerald Beeson raised the possibility of stopping work on the tower following comments Mamdani made while announcing a proposal for a new tax on absentee homeowners.
The financing comes as Griffin's Citadel executed a lease for more than 1 million square feet of space in the building, which is expected to rise 66 stories. The tower will make 850,000 square feet available to the leasing market.
The statement also announced the closing of a joint venture between the partners. Griffin holds a 60% stake through an affiliate, while Vornado's stake is 36% and Rudin's is 4%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing