NEW YORK | 15 Penn Plaza (Hotel Penn) | 1,050 FT / 315 M | 52 FLOORS

[NYguy]

http://www.nypost.com/p/news/business/re...en_in_skyline_war_Rg47P5grAVT5Ocs4QFn5IJ

Time-out seen in skyline war

By LOIS WEISS
December 13, 2011

The Empire State Building just might keep the 34th Street skyline to itself for a few more years. Sources tell us that Vornado Realty Trust is putting off constructing its taller challenger to the west at 15 Penn Plaza until market rents reach a point where it’s worthwhile to redevelop the site with an office building.

In the meantime, Vornado is mulling plowing millions of dollars into renovating its Hotel Pennsylvania, a dowdy cash cow that now sits on the future development site at Seventh Avenue between West 32nd and 33rd streets, across from Penn Station and Madison Square Garden.

“It could cost $30 million just to renovate the rooms,” said one executive who was not authorized to speak on the record. “It’s 1,000 rooms and everything adds up.” Vornado would also commit millions of dollars more to update the lobby and common areas.

Vornado is also facing increased competition for anchor tenants as Brookfield readies its $5 billion, four-tower 5.4 million-square-foot Manhattan West site on Ninth Avenue and Related Cos. gets traction on the West Side with Coach becoming the first tenant/owner for the first Hudson Yards tower.