NEW YORK | 15 Penn Plaza (Hotel Penn) | 1,034 FT / 315 M | 53 FLOORS

[NYguy]

JULY 23, 2023






















Drake concert crowd blocked the sidewalks. Good luck getting into Penn...

[NYguy]

• Video Link

[NYguy]

JULY 30, 2023


Empire and Vandy look on in anticipation…..

[NYguy]

Vornado, of course, remains commited to the Penn District, but no specific word on 15 Penn…


https://finance.yahoo.com/news/q2-20...075556664.html

Q2 2023 Vornado Realty Trust and Alexander's Inc Earnings Call


Wed, August 2, 2023

Steven Roth

Thank you, Steve, and good morning, everyone. It seems to me there's a very close parallel between what happens to malls and what is now happening to office. Five years or so ago, there was universal certainty that mall and brick-and-mortar REIT were dead forever, the victim of ubiquitous and explosively growing e-commerce. Capital markets shut down, no new malls were built. But behold today, 5 years later, malls are booming.

Sound familiar? It seems to be that CBD office in all our cities, New York included, has fallen victim to the same emotional and shortsighted view in the investment community. Work from home is to office what the Internet was to retail. We believe in office work is the better bet and a little time frozen capital markets, and no new supply will restore value and glory to office. Malls and office and the center cities of America are not going away. Our business is continuing to perform well and on plan in this environment. Michael will cover the math and give color in a moment.

Michael J. Franco

…..At PENN 1, we continue to execute a steady stream of leases with new top-tier tenants at attractive rents, reflecting tenants attraction to the unique amenity offering we have in the most successful location in the city. Last quarter, we signed a lease with Samsung at the building. This quarter, we signed a 72,000 square foot lease with Canaccord Genuity, a leading financial services firm. Tour activity is picking up at PENN 2 as well now that the project is nearing completion and tenants can better appreciate the redeveloped product.

PENN 1 and PENN 2 now compete in the very top tier of the marketplace, in most cases versus new construction to the west of us at Manhattan West and Hudson Yards. This is a testament to the marketplace's reception to these 2 market-leading projects as well as confidence in the future of Penn District as the new epicenter of New York.

Overall, we have very good activity in many of our assets, including strong deal volume at 1290 Sixth Avenue and 280 Park and at higher rents than we previously forecasted. Here's the headline. Industry insiders understand there's a shortage of good space on Park Avenue and Sixth Avenue. Actual vacancy is below 10% and rents are moving up nicely. There are certain competitive pockets in the market, such as these, where there is a healthy tenant landlord equilibrium, allowing us to push rental rates higher in our best-in-class buildings. Our leasing pipeline in New York is strong and not reflective of the media's negative office narrative.

We have 580,000 square feet of leases in negotiation, plus an additional 1.2 million square feet in our pipeline. This activity is well balanced in buildings where we have current vacancy and known vacancy where space is coming back to us over the next 18 months and is a good mix of new deals, renewals and expansions. The financial sector, in particular, continues to be the most active.

I wonder if any if that includes the potential leading of Citadel at 280 Park Avenue. We shall see.

[NYguy]

I was wondering why we seem to be stuck at this last level, and went back and re-read what the plans for demo were. It turns out, the reason this was filed as an "alteration" and not a "demolition" is because the plan was to get it down to ground level. I'm not sure what the plans are as far as construction goes, but the sublevels are to remain for now, as will the advertising signs.












The original plan shows the site is partially over the train shed...

[NYguy]

So this is where we will stand for the time being...


AUGUST 6, 2023

[HyperPower]

Originally Posted by Busy Bee

Still a stack of phone books on the skyline.

Remember phone books?

That monstrosity Jenga tower isn't getting built, I adore Foster & Partners but they just drew that up in a hurry.

This entire area/block is going to see a much needed improvement. Give it time for things to shake out, the funding and money must align so everyone gets a slice of the pie 🍕

[NYguy]

Brechtbug

[HyperPower]

https://www.costar.com/article/42948...y-council-says

Movement in the right direction, only 5 years for MSG.



Obviously the City will never get back the original Penn Station that was lost and Hotel Pennsylvania is nearing demo completion but it gives us the chance to see a possible movement east for MSG.

[mrnyc]

its pretty stunning to see the penn hotel gone.

i mean via the photos.

irl i was just there and went into macys the other day and didnt even notice.

btw — if you google map the site its just called penn15 now.

[NYguy]

Originally Posted by HyperPower

Movement in the right direction, only 5 years for MSG.

Means nothing, just that the permit comes up for renewal again. I don't know how many times it has to be said, but the City cannot evict Dolan from the MSG site. What the permit allows is the operation of an arena seating more than 5,000 people. By right, Dolan can do other things with the property. The city is never going to get MSG out of the city, and there's nowhere suitable for it to move to., certainly not the site of 15 Penn.

[fadedgrandeur]

What a loss. I hope people regret tearing down the thing.

[HyperPower]

Originally Posted by fadedgrandeur

What a loss. I hope people regret tearing down the thing.

That would require a soul, most sold that decades ago. Money and their bottom-line is all that matters. Sometimes the city wins and receive a good replacement development other times we lose and a piece of history gets thrown aside for cheap modernity.

This site is too valuable for the area so something redeeming will replace whats lost. Possible spot for MSG if they negotiate taxes with the city and ESD funds for redevelopment.

Vornado owns the lot but stated they aren't building until things shake out in the commercial market. They'll probably tear town Manhattan Mall next door since its become a dead Mall.

With the onset of the COVID-19 pandemic in New York City in 2020, most of the remaining stores departed, and the location became a dead mall. As of mid-2022, the mall area functions primarily as an expanded lobby for the offices of 100 West 33rd Street, allowing office tenants direct access from Sixth Avenue as well as the subway station. Lenscrafters is the only retail store remaining inside the mall.

https://en.m.wikipedia.org/wiki/Manhattan_Mall

[NYguy]

hotos-by-sherm

[Crawford]

Originally Posted by fadedgrandeur

What a loss. I hope people regret tearing down the thing.

I'm only pissed it took so long to remove that fleabag dump.

If you want tired, old dowagers, you're in luck. That portion of Manhattan is basically nothing but such structures.

And, yeah, I hope the Manhattan Mall building is next. Same goes for the adjacent Herald Center building.

[UrbanImpact]

Eventually there will come a style of stylish columns in front of buildings. That is what I gather most people here are upset about exteriorly. The architecture of the Hotel Pennsylvania after all copied classical style and if history keeps repeating like the Hotel Pennsylvania did with it’s architecture throwing a nod to the classical, perhaps the future isn’t too bad.

[fadedgrandeur]

Originally Posted by Crawford

I'm only pissed it took so long to remove that fleabag dump.

If you want tired, old dowagers, you're in luck. That portion of Manhattan is basically nothing but such structures.

And, yeah, I hope the Manhattan Mall building is next. Same goes for the adjacent Herald Center building.

You say "tired old dowagers" like it's an insult! I think the building had a lot of potential even given its current unfortunate state, but it's a moot point now.

[NYguy]

The building was lost long ago. It wasn’t worth it to preserve the facade alone. Vornado did salvage some pieces of the hotel, though it’s not known what will become of them.

Meanwhile, a peek at the site reveals ground floor colomns clearly visible. If not for the knowlege of demolition, you would think there was a new building rising. Vornado only demolished down to the ground floor. Remains to be seen what construction method is used here.

[NYguy]

https://www.gettyimages.com/detail/n...?adppopup=true

[Charmy2]

That glow is making the area look almost like a mini Times Square!