On a Tuesday earnings call, Vornado Realty Trust chairman Steve Roth spent six minutes unloading on New York City Mayor Zohran Mamdani. The trigger: a viral video in which Mamdani stood outside Ken Griffin’s $238 million penthouse at 220 Central Park South to promote Governor Kathy Hochul’s proposed pied-à-terre tax.
Roth called the video “irresponsible and dangerous.” He described Griffin, the Citadel CEO, as “our partner and friend.” The outburst was not a spontaneous vent. It was a signal to the market that political hostility toward wealth now threatens one of Manhattan’s most closely-watched office development projects: 350 Park Avenue.
The 1.5 million-square-foot tower is a joint venture among Vornado, Rudin, and Griffin. Griffin took a 60 percent stake this year and provided a $400 million loan for the project. Demolition of the existing building began days ago.
Roth disclosed that Vornado faces a mid-July deadline to either fully commit to the joint venture or sell its stake. Vornado and Rudin have the option to acquire an interest between 23 percent and 40 percent. After the Mamdani video, Griffin hinted he might walk away.
“It’s a good bet that we will go all in,” Roth said, adding that “this fence cannot be mended by a short, terse, insincere private apology.” The subtext: Roth is betting Griffin stays, but the bet is not risk-free.
The pied-à-terre tax would impose an additional annual levy on high-value second homes. The proposal targets properties valued above $5 million, with rates escalating sharply. Griffin’s $238 million purchase at 220 Central Park South set a national record. Using that building as a prop was a deliberate political choice.
Roth’s broader critique targeted the phrase “tax the rich,” which he called “just as hateful as some disgusting racial slurs and even the phrase ‘from the river to the sea.’” He argued that top earners drive job creation and tax revenue. Vornado alone pays $560 million in annual real estate taxes and personal income taxes, per Roth.
The arithmetic matters. New York City’s office vacancy rate hit 22.5 percent in Q1 2026, per CBRE. The city needs anchor tenants like Citadel to commit to new towers. If Griffin walks, 350 Park Avenue loses its lead tenant and its financing anchor. The $400 million loan from Griffin is not a bank loan; it is equity in disguise.
Roth urged the mayor to pivot toward a business-friendly approach. “Our mayor is young, smart and energetic,” Roth said. “With a little tweak here and a little tweak there, his leadership could make this great city even greater.” The tone was conciliatory at the close, but the damage may already be done.
The pied-à-terre tax is not new. It passed the State Assembly in 2021 but stalled in the Senate. Hochul revived it in her 2026 budget proposal. Mamdani’s video was an attempt to build public pressure. Instead, it built political risk into a $1.5 billion development.
For institutional investors, the lesson is straightforward. Political risk is not a theoretical concept in New York City office development. It is a line item. The July deadline will test whether Vornado’s bet on Griffin’s commitment outweighs the mayor’s bet on taxing second homes. One of those bets will lose.