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

[yankeesfan1000]

Originally Posted by patriotizzy

So is this green lit? I'm confused.

Yeah it was approved this summer, if I'm not mistaken Vornado owns the Hotel Penn as well, maybe? So when they get a tenant they can start demolishing the hotel relatively quickly and this behemoth can start to rise.

[Crawford]

Originally Posted by STR

Just messing with some numbers here, but any development looking to replace MSG today, after the renovation, would have to pay more than 1.1 billion

MSG sits on 6 million square feet of air rights, which are worth FAR more than 1.1 billion.

Just to put into context, Related paid close to $400 million for 800,000 square feet of air rights in late 2008 (a property at 8th and 44th), at the height of the financial crisis.

I would assume whomever eventually buys MSG (it will most likely be Vornado) will pay billions. And I bet it happens sooner rather than later, even if this oft-delayed renovation actually happens.

[RobertWalpole]

Originally Posted by Crawford

....
I would assume whomever eventually buys MSG (it will most likely be Vornado) will pay billions. And I bet it happens sooner rather than later, even if this oft-delayed renovation actually happens.

I thought that the renovation was in progress. Sadly, I think that MSG will linger for twenty more years, though I agree that it eventually will be gone. I wish that it were deemed structurally unsound and that it could be levelled tomorrow.

[SkyscrapersOfNewYork]

Originally Posted by patriotizzy

So is this green lit? I'm confused.

yup its approved. just waiting for a tenant to start construction.

[STR]

Originally Posted by Crawford

MSG sits on 6 million square feet of air rights, which are worth FAR more than 1.1 billion.

Reread what I posted. I never made an estimate for the value of the site. The $1.1B is what, by rule of thumb, what someone would have to pay in excess of the present value in order to give the MSG owners fair return on the money they're putting into the site now. It's what, roughly, the market value of the site will increase by, above and beyond whatever the base is.

[NYguy]

Originally Posted by RobertWalpole

I thought that the renovation was in progress.

It is.

Originally Posted by yankeesfan1000

Yeah it was approved this summer, if I'm not mistaken Vornado owns the Hotel Penn as well, maybe?

Yes, Vornado owns the hotel, and its still open for business. The hotel will remain open until Vornado finds a tenant for the tower.

[Lecom]

Any big tenants looking for space nowadays? Conde Nast is out of the equation as they decided to move to the WTC instead.

[NYguy]

Originally Posted by Lecom

Any big tenants looking for space nowadays? Conde Nast is out of the equation as they decided to move to the WTC instead.

This is the last list that was circulating, though not every firm looking for new or large leases is on it...




However, I do believe that Bloomberg is a potential tenant as the company has outgrown its own tower, taking an additional 400,000 sf near Grand Central. This would be just the right size for consolidation and a little room for future growth.

http://www.bloomberg.com/news/2011-02-09...eement-for-office-space-in-new-york.html

Bloomberg L.P. Announces Agreement for Office Space in New York
Company Signs Lease for 400,000 Square Feet at 120 Park Avenue to Accommodate Bloomberg’s Growth

Feb 9, 2011

Bloomberg L.P. today announced that it has reached an agreement to lease more than 400,000 square feet of additional office space at 120 Park Avenue in New York to accommodate the Company’s rapid growth.

“This new location is ideal as we build upon our record-setting year in 2010 and position ourselves for future growth,” said Peter Grauer, Chairman of Bloomberg L.P.

Since 2008, Bloomberg L.P. has added 1,805 New York-based staff and now employs more than 6,500 people in its New York offices.

“We continue to hire in New York and we expect that to continue as we expand our businesses and move into new markets worldwide,” said Daniel Doctoroff, President of Bloomberg L.P.

Bloomberg expects to begin occupying the new offices in late 2011 after renovations to the space. In December, the company announced plans to build a new European headquarters in the City of London that will include over 500,000 square feet of office space.

At this point, the earliest 15 Penn would be available would be 2016. And that's if demo began this year. It will be very interesting to see who goes where, with the various developments coming back into play.

[Crawford]

Originally Posted by RobertWalpole

Sadly, I think that MSG will linger for twenty more years, though I agree that it eventually will be gone.

The thing is that MSG had an even more ambitious renovation in the mid-1990's, yet they were back 10 years later saying they needed another renovation.

This MSG renovation does nothing to solve the arena's long-term issues. It's basically a band-aid, and they will need to reconsider their options a few years from now anyway.

[SkyscrapersOfNewYork]

Originally Posted by NYguy

This is the last list that was circulating, though not every firm looking for new or large leases is on it...




However, I do believe that Bloomberg is a potential tenant as the company has outgrown its own tower, taking an additional 400,000 sf near Grand Central. This would be just the right size for consolidation and a little room for future growth.



At this point, the earliest 15 Penn would be available would be 2016. And that's if demo began this year. It will be very interesting to see who goes where, with the various developments coming back into play.

why 2016,i thought i was projected to be up by 2014?

[patriotizzy]

Thanks for the replies fellas! I'm glad this is green lit, and it's just a matter of time before it gets built.

[NYguy]

Originally Posted by SkyscrapersOfNewYork

why 2016,i thought i was projected to be up by 2014?

That was if work began in 2010. That's not gonna happen, and even 2011 is questionable at this point.

[RobertWalpole]

The Hudson Yards poses a problem for this building in the short-term since Related stated that it initially seeks $70/sf, and Vornado seeks in excess of $100/sf for 15 Penn.

[yankeesfan1000]

Very true, it should be noted that BofNY Mellon is not thinking of relocating, but I also remember Wells Fargo possibly looking at more space in NY, maybe I dreamt that here's a link to the BofNY Mellon story:

http://www.crainsnewyork.com/article/20101209/REAL_ESTATE/101209851

[NYguy]

Originally Posted by RobertWalpole

The Hudson Yards poses a problem for this building in the short-term since Related stated that it initially seeks $70/sf, and Vornado seeks in excess of $100/sf for 15 Penn.

Somewhat, but remember these are also different types of buildings, not necessarily seeking the same types of tenants. 15 Penn seems suited more for a financial tenant, though there are two versions of the tower. Related's tower offers a lot less office space and is further from Penn Station.

[RobertWalpole]

Nonetheless, Credit Suisse is supposedly seeking space here.

[NYguy]

Originally Posted by RobertWalpole

Nonetheless, Credit Suisse is supposedly seeking space here.

That would be great news. A tenant would enable Vornado to get financing and announce a closing date for the hotel. Until then, we'll keep watching and waiting.

[RobertWalpole]

CS seeks space in the Yards.

[NYguy]

More on the hunt for space...

http://www.observer.com/2011/real-estate/wells-fargo-isnt-only-one-getting-bumped
Wells Fargo Isn't the Only One Getting Bumped

By Laura Kusisto
February 21, 2011

When Bloomberg sailed into Wells Fargo's chosen space at 120 Park Avenue, industry insiders were shaken by the switch. Now Crain's reports that even Wells Fargo thought they had the space nailed:

"A few weeks ago, [senior vice president John] Saclarides got a call from the landlord telling him that the bank was being bumped to accommodate Bloomberg, which had signed a lease for 400,000 square feet."

Said Mr. Saclarides: "I was on a train when the owner called, and I asked him to repeat it to make sure I heard him correctly. I'm extremely disappointed because we had put a lot of time and effort into that deal."

Crain's reports that this kind of no-holds-barred war for desirable spaces over 100,000 square feet is becoming more common.

WilmerHale, for example, was blindsided when the owner of 825 Eighth Avenue said it wouldn't sign an agreed-upon deal for 200,000 square feet because it was negotiating with Nomura Holding America, which needs nearly four times as much space. Likewise, law firm Chadbourne & Parke lost the chance to renew its lease at 30 Rock when Deloitte signed its 436,000-square-foot deal there in December.

Said Crain's: "A combination of the improving economy and lease expirations are pushing more big tenants into the market at a time when their options are limited by the city's aging building stock and lack of new construction. In the constant power struggle between tenants and landlords, the latter are gaining back the upper hand in the market for spaces of more than 100,000 square feet."

The Commercial Observer spoke with two sources on Feb. 18, who confirmed that there has, in fact, been an uptick in showings of the market's larger available spaces. Meanwhile, Wells Fargo says they plan on negotiating with multiple landlords so they don't get "flatfooted again."

Landlords bumping tenants out of major deals, while tenants entertain multiple possible spaces until the last minute? It should be an interesting year.

[Skyscraper Sebastian]

When will construction start?