A powerful Wall Street insider is threatening to scrap a $6 billion Manhattan real estate project after clashing with New York City's mayor. Ken Griffin's Citadel LLC is reconsidering its planned redevelopment of 350 Park Avenue after Mayor Zohran Mamdani singled the entrepreneur out in a viral video backing a new tax on wealthy property owners.
In an internal email to staff obtained by the Daily Mail, Citadel's chief operating officer Gerald Beeson said the firm may not proceed. '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,' he wrote. 'The project - if we move forward - will entail more than $6 billion dollars of spending.'
The dispute was triggered by a video posted by Mamdani promoting a so-called 'pied-à-terre tax' on luxury second homes. Standing outside Griffin's $238 million penthouse at 220 Central Park South, the socialist mayor outlined his new tax scheme, which would introduce an annual surcharge on all luxury homes in the Big Apple valued at over $5 million if they are being used as a second home. It is projected to generate around $500 million annually in a bid to help close the city's budget deficit.
Mamdani pointed up to Griffin's lavish apartment as he announced the policy, stating it would specifically hit high-value residences 'like this penthouse.' Griffin broke the record for the most expensive home purchase in the US when he snapped up the Manhattan penthouse in 2019, but his primary residence is in Miami, Florida after relocating his hedge fund in 2022.
Beeson called Mamdani out for using the billionaire as an example in his email, while also coming to his defense. 'It is shameful that he used Ken's name as the example of those who supposedly aren't carrying their fair share,' he wrote. 'The Mayor has once again manifested the ignorance and disdain of the elite political class.'
The Citadel COO said its employees and partners have paid nearly $2.3 billion in city and state taxes over the past five years. And its planned development would span close to 2 million square feet and support thousands of construction and permanent jobs. On top of Citadel's financial contributions to New York, Beeson highlighted the firm's broader charitable involvement, noting that around 200 team members serve on the boards of local nonprofit and cultural institutions.
Meanwhile, he applauded Griffin's personal philanthropy, saying he has directed around $650 million to causes in New York City, including the Success Academy charter schools and leading institutions such as Memorial Sloan Kettering, Weill Cornell, and NYU Langone. But Beeson isn't the only one who has questioned Mamdani's tactics. After Mamdani's clip circulated on social media, CNBC anchor Sara Eisen slammed the Democrat for calling out a private citizen and 'demonizing' Griffin to promote his tax policy.
'Ken Griffin employs thousands of people in NYC and is planning to build the tallest office tower on Park Ave., investing billions more and creating thousands more jobs,' Eisen said in defense of the billionaire. Hedge fund manager Dan Loeb also criticized the video, calling it 'childish' and warning it could damage jobs and tax revenue. Mitchell Moss, a professor at New York University, said attacks on wealthy investors can carry economic consequences. He said city finances rely heavily on commercial property taxes and high earners.
Griffin has previously moved operations in response to political and economic conditions. In 2022, he relocated Citadel's headquarters from Chicago to Miami, citing crime and taxes. The proposed pied-à-terre tax still needs approval from the state legislature and is expected to face strong opposition from the real estate industry. Similar measures have been introduced in the past and ultimately failed to pass, most recently in 2019.
Any decision by Citadel on the latest plans would affect one of the largest office projects currently proposed in Manhattan. Beeson concluded in his email: 'For more than 25 years, our New York offices have been a vital hub of dynamism in the financial life of the city – and our country. We have nearly 2,500 colleagues who have chosen to build their careers here – drawn by the opportunity to do meaningful work at the center of the world's financial capital. We understand that our hard work and success will, on occasion, make us targets for political rhetoric. But it should not diminish the pride we take in building firms that will continue to help New York City thrive for decades ahead.'
