Posted Aug 5, 2020, 2:10 AM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
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https://seekingalpha.com/article/436...all-transcript
Vornado Realty Trust (VNO) CEO Steven Roth on Q2 2020 Results - Earnings Call Transcript
Aug. 4, 2020
Quote:
Jamie Feldman
And then as you think about, I mean, now that Farley is done. Can you talk about the conversations around PENN 2. I mean, what is that depth of demand look like? I know you've got some time before that project is completed, but just - that's certainly next step to the plate?
Steven Roth
It sure is. So the first thing is that, I'm sure you have, but I ask you again, take a look at our website where we have a fairly large picture book of what we are going to be doing at 2 Penn, what it's going to look like, what the amenities are, what the services we're going to bring to our tenants.
And by the way, we look upon PENN 2 and PENN 1 as a campus, because those two buildings will be interconnected. So we have basically a 4 plus billion square foot campus in - on top of Penn Station, which is - I submit an unbelievably scarce asset and valuable.
The development plan for 2 Penn is too long. It's the better part of three years, but that's what it takes. So we have lots of time in terms of the leasing. We are going to basically - Glen is basically going to stay out of the market for the next year. We're not even going to entertain, well, if something comes along maybe, yes, but basically our intention is to not start to lease it for a year when the market begin to see some of - a better visibility into what the product will look like.
Now there was some conversation that in past calls where we said that we had a 400,000 foot anchor tenant to whom we were talking that I said in last quarter's call that conversation has - as expected gone into pause. Not gone away, gone into pause, okay.
The major tenant in that building now is somebody called Madison Square Garden. They have been in that building for decades. That building is adjacent to their business. And so, that's really - 2 Penn has been the home of Madison Square Garden for a long while. So you can put two and two together, but the - and that's - and that's the status report on that.
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Quote:
Steven Roth
The other thing, by the way, is the design of the building with the bustle creating the overhang, creating the prominence, creating the entrance to Penn Station, et cetera. I mean, it has got universal applause.
And so, we're pleased about that. There is an elephant company that's in the marketplace that is looking - by the way, it happens to be looking at both 350 Park Avenue, and 2 Penn, which is an interesting combination of locations. And their boss basically said that going through the renderings and the presentation that he thought that the design and the bustle were extraordinary piece of architecture and we agree with that.
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Quote:
Jamie Feldman
Okay. Thanks for the color. And you're saying that the tenant looking at 350 Park and 2 Penn, they would only take one. They are not --
Steven Roth
Glen is good, but he can't sell a space twice. No, they would only take one.
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Quote:
Alexander Goldfarb
....Next, I was going to give you a plug for talking to Steve Schwarzman, your buddy about anchoring 350, but sounds like Glen is also trying to sell him on Penn Station. So look forward to that as well.
Steven Roth
Well, first of all, I'll pass the congrats off to Glen and David. Second of all, don't make that conclusion. It's not a good conclusion.
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