Citadel Reaffirms Commitment to $6 Billion Manhattan Tower Despite Mayor Feud

Citadel is moving forward as the anchor tenant and 60% partner in the redevelopment of 350 Park Avenue, solidifying its long-term presence in Manhattan despite months of public friction with New York City Mayor Zohran Mamdani.

Vornado Realty Trust Chief Executive Officer Steven Roth confirmed the hedge fund’s participation during an earnings call, identifying Citadel as the project’s “60% partner” and its “one-million-square-foot anchor tenant.” Citadel verified Roth’s comments, signaling an end to questions over whether the financial firm would pull out of the site.

The redevelopment of 350 Park Avenue is expected to involve significant capital expenditure. In a previous statement detailing the project’s scale, Citadel Chief Operating Officer Gerald Beeson noted: “We are about to commence the redevelopment of 350 Park Avenue, creating 6,000 highly paid construction jobs and supporting the creation of more than 15,000 permanent jobs in mid-town New York.” Beeson added that “The project—if we move forward—will entail more than $6 billion dollars of spending.”

The decision resolves months of uncertainty that began after Mayor Mamdani announced a proposed pied-à-terre tax targeting secondary residences valued above $5 million. As part of a publicity video released on Tax Day, Mamdani stood outside Griffin’s $238 million penthouse to call for new revenue policies. The video drew immediate fire from business leaders, with Roth describing it as an “ugly and unnecessary video stunt” and stating he was “shocked that our young mayor would pull this stunt in front of Ken’s home and single him out for ridicule.”

Griffin previously criticized the mayor’s actions as “weird” and “creepy,” while emphasizing that Citadel’s corporate commitment to New York extends beyond municipal political cycles. “Citadel will be a principal player in financial services for far longer than [the mayor] will be mayor,” Griffin said. “We intend to be here for decades. And he will be here for a few years.”

Mamdani has maintained that his administration seeks to foster local business growth alongside tax reform. “I want New Yorkers to succeed,” Mamdani said during an April press conference. “I want them to build businesses, to grow our economy, and to create good-paying jobs, and Ken Griffin has been a part of that.”

The firm’s move comes as financial institutions continue to balance high tax rates with New York City’s institutional advantages. “It’s not always that easy just to give up New York City, especially if your family’s there, if your business is there,” said Nick Montorio, partner at EisnerAmper. “The benefits of being around New York City for most of our clients and those businesses usually outweigh the negatives.”

According to data from the New York City Economic Development Corporation, the city’s private sector expanded employment by nearly 55,000 year over year and captured $6.3 billion in venture capital funding. “I would say our businesses regularly talk about… leaving New York City, but very few actually do,” Montorio said. “This is where the resources are. This is where the money is. This is where a lot of educated people reside.”