Key insights
- Ken Griffin is reconsidering a $6B NYC development project after Mayor Mamdani promoted a new luxury property tax outside Griffin's penthouse. The project would create 6,000 construction jobs and 15,000 permanent jobs. The COO of Griffin's firm indicated that the public targeting could derail the project.
Investing.com -- Billionaire Ken Griffin is reconsidering a $6 billion Manhattan development project after New York City Mayor Zohran Mamdani filmed a video promoting a new luxury property tax outside Griffin’s Central Park South penthouse, according to a report from the Wall Street Journal, citing an email to employees.
On April 15, Mayor Mamdani released a video standing outside 220 Central Park South, where Griffin purchased a unit for approximately $238 million in 2019. In the video, Mamdani announced a pied-à-terre tax, an annual fee on luxury properties worth more than $5 million whose owners do not live full-time in the city.
"We’ve secured a pied-à-terre tax. This is an annual fee on luxury properties worth more than $5 million, whose owners do not live full-time in the city. Like for this penthouse, which hedge fund CEO Ken Griffin bought for $238 million," Mamdani said in the video.
In an internal email sent Thursday, Gerald Beeson, Chief Operating Officer for Griffin’s firm, indicated that the public targeting of Griffin could derail a redevelopment project at 350 Park Avenue. The project would entail more than $6 billion in spending, create 6,000 construction jobs, and generate 15,000 permanent jobs in Midtown Manhattan.
"The project — if we move forward — will entail more than $6 billion dollars of spending," Beeson wrote, framing the commencement of the work as a decision currently under reconsideration.
The pied-à-terre tax targets non-primary residences and imposes an annual fee on luxury properties valued over $5 million when owners do not reside in New York City full-time.
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