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

[NYguy]

Originally Posted by Busy Bee

NYguy disagrees.

He'll be here in a second to assure us it will never happen.

For the record I think he is wrong and have been saying so for a long time.

I’m a little late. But rest assured, that will never happen. Reclaim your sanity (those who had it to begin with), and let it go.

Focus on this:

In 2023, Vornado demolished the old Pennsylvania Hotel on Seventh Avenue between 32nd and 33rd Streets, leaving a vacant 80,000-square-foot parcel. "We're strategizing on that site," Weiss said. "It could be office. It could be residential. It could be retail. It could be a hotel. It could be a mix of all that. We could build 2.5 million square feet there," as allowed by the zoning.

If anybody still wants to hold on to that, there’s still a thread for it.

[ChiND]

https://therealdeal.com/new-york/2025/02/11/vornado-realty-trust-mulls-penn-15s-future/

[NYguy]

Originally Posted by ChiND

https://therealdeal.com/new-york/2025/02/11/vornado-realty-trust-mulls-penn-15s-future/

Vornado plots high hopes for Hotel Penn site — but needs rents to match
Ground-up development still doesn’t pencil out, REIT says


Feb 11, 2025
By Kathryn Brenzel

Last year Vornado Realty Trust executives floated tennis courts at the old Hotel Pennsylvania site to ride out an “office apocalypse.”

On Tuesday, CEO Steve Roth dismissed the threat of the remote work trend as “a scare,” and said the Hotel Penn site, also known as Penn 15, “was down to the ground and ready to go.”

The company is moving forward with its plans for the 1.8 million-square-foot office tower at 350 Park Avenue and is expecting to enter public review next month. But that tower is different: Vornado already has an anchor tenant, Ken Griffin’s Citadel, which is also a 60 percent partner in the project.

“350 Park is an isolated, different point of view,” Roth said during the real estate investment trust’s fourth quarter earnings call. “My prediction is that almost no other building will get off the ground. And by the way, that could very well include, for the short term, Penn 15.”

Still, Roth said if the company views the land at Penn 15 as a sunk cost and if rents rise to the high $100s or even above $200 a foot, the tower could get off the ground.

“That obviously is the next site,” Roth said. “We are considering all options.”

He clarified that “clearly” office space would be at the front of the building, but that the company was also considering apartments as part of the project.

He said he has high hopes that asking rents at Penn 1 and Penn 2 will rise well above $100 per square foot. He said the company is weeks away from signing a 300,000-square-foot lease at Penn 2 and is negotiating a letter of intent for a “major headquarters” at the redeveloped office building.

[UrbanImpact]

I can't imagine wealthy people wanting to live in high priced apartments here due to the busy immediate area. I understand the apartments are for now hypothetical, but, to justify construction of a supertall building in this day of age, rents are typically high.

[ChiND]

Originally Posted by UrbanImpact

I can't imagine wealthy people wanting to live in high priced apartments here due to the busy immediate area. I understand the apartments are for now hypothetical, but, to justify construction of a supertall building in this day of age, rents are typically high.

I don't know about condos, but rentals would do very well there. For that matter, condos might do reasonably well too. We'll see how the new building on 6th sells. I'll bet that it's good.

A big new hotel within the complex would also do well.

If they build a nice, mixed-use tower here, it will precipitate the redevelopment of this area.

[NYguy]

Originally Posted by UrbanImpact

I can't imagine wealthy people wanting to live in high priced apartments here due to the busy immediate area. I understand the apartments are for now hypothetical, but, to justify construction of a supertall building in this day of age, rents are typically high.

People will live anywhere in New York. It’s all about the building and the amenities. The Manhattan mall site is also being considered for a residential/mixed-use development.

[ChiND]

Originally Posted by NYguy

People will live anywhere in New York. It’s all about the building and the amenities. The Manhattan mall site is also being considered for a residential/mixed-use development.

I agree. Also, Vornado owns so many huge sites in this area where they can build offices. I think that they need to start cleaning up the area before they can build a tower seeking $200/sf in rent. If they develop a nice mixed use at 15 Penn, it will start the process.

[NYguy]

https://therealdeal.com/new-york/2025/02...h-costs-will-block-new-office-buildings/

[b][size=4]Vornado’s Steve Roth talks office demand, Hotel Penn





By Kathryn Brenzel
February 12, 2025

While demand for this space is back up, developers aren’t clamoring to build more of it. Roth pointed to high interest rates and lack of available capital, as well as the unknown added construction costs resulting from tariffs on steel. Citadel’s Ken Griffin reportedly called the tariffs a “huge mistake” on Tuesday.

Tuesday’s call was a bit of a rollercoaster in terms of discussion around the future of the Hotel Penn site. Roth said that the office project planned there would be the next site to be developed in the Penn District, but then also acknowledged that the financials around ground-up development are still prohibitive. He didn’t mention temporary plans for the site (such as tennis courts) but did say Vornado is considering all options. Whether that includes temporary uses for the site, in addition to the ultimate mix of the building, was not immediately clear.

He even predicted the tower planned for 350 Park Avenue will be the only major office tower to break ground over the next few years (demolition of the existing office building is expected to begin next year). We shall see!

[NYguy]

March 1, 2025

[NYguy]

1 and 2 Penn have been having a lot of success, hopefully some momentum to carry over here.


https://www.bloomberg.com/news/articles/...to-near-deal-for-offices-at-nyc-s-penn-2

Universal Music Nears Deal for Offices at NYC’s Penn 2
-Building was recently revamped with new amenities, facade
-Vornado CEO said he expects tower to be 80% leased by year-end


By Natalie Wong and Nacha Cattan
March 5, 2025

Universal Music is discussing a lease that would total roughly 300,000 square feet (27,900 square meters), according to the people, who said negotiations are ongoing and asked not to be identified discussing private information.
Representatives for Vornado and Universal Music declined to comment.

Vornado has spent years revitalizing buildings around Manhattan’s Penn Station, a major transit hub in the city. The company redeveloped the 31-floor office building, called PENN 2, to give the tower a new facade, lobby and rooftop lounge, among other upgrades.

[NYguy]

Random renderings and a timeline of sorts.

[NYguy]

The area has been steadily picking up monentum since the renovations……


https://www.crainsnewyork.com/real-estate/nomura-talks-offices-manhattans-penn-2-tower

Nomura in talks for offices at Manhattan’s Penn 2 tower





Natalie Wong and Nacha Cattan
March 26, 2025

Nomura is discussing a lease with Vornado Realty Trust for space at its Penn 2 tower, said the people, who asked not to be named because the matter is private.

Negotiations are ongoing, and plans could still change, one of the people said. Representatives for Vornado and Nomura declined to comment.

Nomura joins a wave of companies that have sought to upgrade to new or redeveloped offices in the city. Vornado recently redeveloped Penn 2, adding a new facade, lobby and rooftop lounge to the 31-story office building. The tower’s tenants include Major League Soccer, and Vornado has been in talks with Universal Music Group NV for space at the building, Bloomberg has reported.

The real estate company, run by billionaire Steven Roth, has been seeking to turn around the area near Manhattan’s Penn Station, a massive transit hub for the city. The company also revamped Penn 1.

Nomura has been on the hunt for new offices in Manhattan with plans to downsize its footprint, Bloomberg reported in 2023. In 2011, the firm signed a lease for more than 900,000 square feet of space at Worldwide Plaza for its Americas headquarters. The lease expires in 2033, but Nomura has an option to exit in 2027.

[ChiND]

Considering that RXR is part-owner of WWP, it would be nice if Rechler can get them to anchor 175 Park. He'd have the flexibility to extend their lease there by a year or two if time is needed to finish 175.

[ajbeaver25]

This building is slowly growing on me, just wish there wasn't the height chop.

[NYguy]

It’s still a bit bulky for me. I wish it tapered more as it rose. But I’m not counting on this latest version being the one that gets built.

[BuildThemTaller]

I am hoping for a complete redesign. If the tower isn't going to be as tall, why stick with the offset core?

[NYguy]

Originally Posted by BuildThemTaller

I am hoping for a complete redesign. If the tower isn't going to be as tall, why stick with the offset core?

They're already changed that, it's why the blank wall is gone.












Older version

[NYguy]

Retail on all sides is a good way to go. Still, I find this tower just a little too bulky, for it's height. Otherwise, it's actually a nicely designed tower for any tenant. We'll probably be looking at more changes before anything is actually built here.

[NYguy]

https://therealdeal.com/new-york/2025/05/06/vornado-welcomes-trumps-penn-takeover/


By Kathryn Brenzel
May 6, 2025

On Tuesday, Vornado executives were coy about the future development within the Penn District. One analyst asked about the potential sale of the Hotel Penn site, where Vornado has long planned an office building. Vornado president and CFO Michael Franco said the company looks “at all opportunities.”

“The focus today is investing in existing business, whether new development or paying down some debt,” Franco said. “We are looking at some external opportunities, and it is hard to put the odds on whether any of those move forward.”

Earlier in the call, another analyst pointed to Deloitte’s agreement to lease 800,000 square feet in Related Companies’ 70 Hudson Yards, asking if a deal of that magnitude would give Vornado confidence to begin construction at the Hotel Penn site, known as Penn 15. Roth said Vornado, along with “all the developers in town,” were shown the Deloitte lease. Vornado, he said, can afford to wait for a better offer.
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“The deal that was made was a very aggressive deal for the tenant; the pricing was very tight,” he said. “We’re not bashful to say no to a deal that doesn’t give us the financial results that we think our shareholders are entitled to.”
“We’re getting there,” he added. “I think we’re on the foothills of a landlord’s bull market.”

Roth also called the Penn 15 site the second-best vacant piece of land in town, ranking just below 350 Park Avenue, where the firm is co-developing an office tower anchored by Ken Griffin’s Citadel.

In his annual letter to shareholders in April, Roth hinted that Vornado could pivot to building apartments, saying such construction costs less than office buildings and the market for the former is less volatile.

Roth simply said Vornado will be “sprinkling in a not insignificant amount of apartments” in the Penn District. He has previously indicated that housing could be built as part of Penn 15. The firm also plans to move forward with a small apartment building at 34th Street and Eighth Avenue.

[ChiND]

From TheRealDeal article:

On Tuesday, Vornado executives were coy about the future development within the Penn District. One analyst asked about the potential sale of the Hotel Penn site, where Vornado has long planned an office building. Vornado president and CFO Michael Franco said the company looks “at all opportunities.”

This is music to my ears. I'm a Rangers fan, and MSG is crap. The NYR and Knicks deserve better. Also, envision a 1,600' tower on the Gimbel's site which utilizes MSG's 1.4m sf in air rights.




GrandPennAlliance



versus mierda per se!


Alamy


This would be incredible.


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