[NYguy]

https://seekingalpha.com/amp/article...-earnings-call

Alexander Goldfarb

Okay. The second question, Steve, is going back to Penn Station, you guys for over two decades have been talking about Penn Station. We all know the issues about the streetscape and the neighborhood and the desire to see that improve. When you look at Grand Central that area is already there, Eastside Access is clearly going to sites in a way a huge chunk of Long Island commuters and you guys have 350 Park.

It would seem that 350 is almost the better site than Hotel Penn, just given that the neighborhood is already there, and there are a lot more people being excited by the commuter hub and you have East Side access coming in the next few years.

So what are your thoughts on accelerating 350 and where does that fit in your pipeline as you guys are flat market anchoring a Hotel Penn versus getting tenants to anchor at 350?

Steven Roth

We are an equal opportunity employer, wherever the tenants want to go, that's where we want to put them. We have - obviously, we have an enormous amount of respect for our 350 Park Avenue asset, it's a great asset and it's kind of like bite-sized. It's a 500,000 square feet asset. It's obviously a candidate for teardown and rebuild.

But in teardown and rebuild is a combination and we can grow the site too, by the way, as speculated in the press. So we could grow it so that it's more than 2 million square foot building if we wanted to just focus on our own site without growing it, which would be a million square foot building.

That is an immense financial undertaking which would require record rents, which we have talked to several tenants about, and we may do that, but the likelihood is we will not do that. The more likely outcome is that we will rent up the existing 350 Park Avenue at very favorable rents and so it would like postpone it for a cycle, and retain the option of doing a new build on it or continuing to rent the existing building the over time.

So it's more likely that we will not do a teardown on that site and rent it out for one more cycle, and focus our efforts on the Penn Station district. That's the more likely outcome, although we couldn't be more delighted.

By the way, if we decided that we wanted to sell that asset with all of its optionality in terms of the new build or whatever, we think we can get an extraordinary price for it, but that's not something that's high on our agenda right now.