[NYguy]

https://therealdeal.com/issues_articles/cuomos-penn-pals/

Cuomo’s Penn Pals?


C.J. HUGHES
FEB 1, 2020

The latest proposal to expand Penn Station — given new urgency by Gov. Andrew Cuomo last month — includes plans to acquire a full city block to the south for an entirely new terminal with eight tracks.

The governor now has his sights on West 30th and West 31st streets between Seventh and Eighth avenues for the “Empire Station Complex” megaproject.

... that plan would require clearing the entire block — a somewhat shabby mix of prewar office buildings, low-slung restaurants, tenement-style apartments and Victorian-era churches — through negotiated purchases or eminent domain.

All told, the block has 51 properties, including 30 condo units. The plan would also wipe out 763,000 square feet of commercial space. One asset — a six-story industrial property — already belongs to Amtrak.

It remains to be seen which developers Empire State Development, which is overseeing Penn Station’s expansion, will pick to lead the project, but real estate giant Vornado Realty Trust would have a built-in advantage in the bidding process. Steven Roth’s firm owns millions of square feet of property in the area that would greatly benefit from the project, allowing Vornado to undercut other firms and make up any losses through increased property values.

Here’s a closer look at some of the key numbers behind the Penn Station expansion plan.

7.4M sq. ft.

The total amount of office space that Steven Roth’s Vornado controls around Penn Station. The REIT also owns local retail space, including the 1.12-million-square-foot Manhattan Mall, and the Hotel Pennsylvania.

$305M

The combined “market value” of all 51 properties on the block targeted for acquisition, according to an analysis of Department of Finance estimates. Seven Penn Plaza, an 18-story prewar office building owned by the Feil Organization, is pegged at $112 million. But the city’s numbers, which do not factor in air rights, are likely far below what the properties would actually sell for: Amtrak and the governor have said it may cost upwards of $1 billion to purchase all the buildings.

3 years

The amount of time left on Madison Square Garden’s special operating permit before James Dolan’s firm will have to secure a renewal or relocate the arena. Cuomo has suggested converting the arena’s Hulu Theater — a 5,600-seat concert venue that’s hosted Bob Dylan, Van Morrison and Elton John — into a new entrance for Penn Station.

34%

The portion of the block in Cuomo’s sights controlled by Amtrak, the Archdiocese of New York and Gordon Property Group, which owns a 1,500-space parking garage. That those three parties control a third of the block may be welcome news for state negotiators, though officials would still have to contend with other, smaller stakeholders.

10

The number of development firms that responded to RFPs to upgrade Penn and the surrounding area in 2016. The list included Extell, Silverstein Properties and JDS Development, according to news reports, but Cuomo tapped Vornado and Related Companies for the project the following year, and Vornado bought out most of Related’s share in 2018.