Vornado Realty Trust’s CEO publicly rebuked New York City’s mayor, warning that a political video targeting a billionaire partner could derail a $4.5 billion office development.
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Vornado CEO Slams Mayor's 'Stunt' Risking $4.5B Park Avenue Tower
Vornado Realty Trust Chairman Steven Roth condemned New York Mayor Zohran Mamdani’s recent social media video targeting Citadel CEO Ken Griffin, calling the move an “irresponsible and dangerous” stunt that injects uncertainty into a planned $4.5 billion office tower on Park Avenue.
“We are all shocked that our young mayor would pull this stunt in front of Ken’s home and single him out for ridicule,” Roth said during the company’s first-quarter earnings call on Tuesday, adding he “unambiguously” stands with Griffin.
The controversy follows a video where Mamdani criticized Griffin’s ownership of a $238 million penthouse. The backlash now threatens a 1.7 million-square-foot skyscraper at 350 Park Avenue, a joint venture set to house Griffin's firm, Citadel. Despite the political friction, Vornado’s funds from operations (FFO) for the first quarter were $96.2 million, or 49 cents per share.
At stake is a major commercial development that promises thousands of construction and permanent jobs and millions in annual tax revenue for a city grappling with fiscal pressures. The project had already secured unanimous 48-0 approval from the City Council, but the mayor’s actions could prompt Griffin, who has been expanding his presence in Miami, to reconsider his commitment to New York.
Roth emphasized that the partnership with Griffin and Rudin to develop the 62-story tower has been in motion since the previous administration. He framed the mayor's attack on the city's highest earners as counterproductive, noting that the top one percent of earners contribute 50 percent of New York's income tax. "They should be praised and thanked," Roth stated.
The public defense of Griffin was echoed by billionaire investor Bill Ackman, who accused the mayor of trying to drive out key economic contributors. The incident overshadowed Vornado’s first-quarter financial results, which showed a narrowed net loss of $22.8 million compared to an $86.8 million loss in the same period last year, on revenue that was nearly flat at $459.1 million.
This article is for informational purposes only and does not constitute investment advice.
[1] Zohran Mamdani's viral video outside Ken Griffin's penthouse shocks Vornado CEO: ‘Ugly, unnecessary'[2] Vornado CEO appeals to Mamdani after mayor’s Griffin 'blunder'[3] Vornado Begs Mamdani to Reverse Course on Griffin ‘Blunder’ (2)[4] Steven Roth Criticizes Mamdani Over Ken Griffin Spat in Earnings Call
