A joint venture between Vornado Realty Trust and Rudin Management Co. has cut a deal with Citadel Enterprises America that will facilitate the building of a new 1.7M SF office tower on NYC's Park Avenue.
Citadel will master lease 350 Park Ave., a 585K SF office tower owned by Vornado, and 40 E. 52nd ST., a 390K SF building owned by Rudin. According to the terms of the deal, the companies have agreed to a 10-year "as is" lease with an annual rent of $36M.
Vornado also is partnering with Rudin to acquire 39 E. 51st, an adjacent 11K SF building. The plan is to combine the three properties and build a new tower on the consolidated sites. Vornado purchased 350 Park Avenue in 2006 for $542M.
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