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

[NYguy]

http://www.nypost.com/p/news/busines...AVT5Ocs4QFn5IJ

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.

[Rey88]

Originally Posted by NYguy

http://www.nypost.com/p/news/busines...AVT5Ocs4QFn5IJ

Time-out seen in skyline war

By LOIS WEISS
December 13, 2011

So, we can say... Bye Bye to this tower.

[Dac150]

Originally Posted by Rey88

So, we can say... Bye Bye to this tower.

Only for a few years, as the article indicates . . .

In the meantime, we'll have plenty to keep us occupied.

[Dylan Leblanc]

I wondered about this tower, with all the other projects starting in the area.

How long will it take to break even on the $30 million hotel renovation I wonder?

[Dac150]

Originally Posted by Dylan Leblanc

I wondered about this tower, with all the other projects starting in the area.

How long will it take to break even on the $30 million hotel renovation I wonder?

I'm not that familiar with the hotel, however from what I understand it is still relatively popular and draws a crowd. I doubt Vornado would pursue something like this unless they were certain they could make it profitable temporarily, let alone break even.

There's no doubt though - if they do indeed move forward with this - that the hotel will be around for years to come.

[599GTO]

So sad...that part of town really needs a makeover. This tower would have transformed it.

[Dac150]

^^^ They'll be plenty of additional developments within that area that will take place until market conditions warrant the development of this project. Nowhere in that article was it stated that this development is cancelled . . . lets not spread inaccurate information.

[NYguy]

Originally Posted by Dac150

I'm not that familiar with the hotel, however from what I understand it is still relatively popular and draws a crowd.

The hotel has always been a money maker for Vornado, even as a placeholder, that's why its stayed open. They have also always talked of the renovations, even before final approvals for the tower were in place. They have been consistent in saying this one won't be built without a tenant. However, I expected Brookfield's Manhattan West to be the last of the bunch to move forward, specifically because they said they wanted to wait for higher rents. That one now seems to be moving forward, and if it does, along with the Hudson Yards getting of the ground, expect interests to logically shift here.

[reencharles]

What the hell ... I can not believe it. This was one of the best projects in New York, super tall and still very close to the Empire State. As stated in a previous review, was the chance to proof that we can build something as large near the ESB.
Regrettable. For me it was one of the worst news of the year.

But the thing is: everything was good to be true.

[RobertWalpole]

This tower and 2 and 3 WTC are a few years off. No developer can compete cost-wise with Related's Hudson Yards. Silverstein and Vornado need to clear $90 to $100/sf to make their projects viable. Once Related leases its 6m sf at the Yards, which might not take more than a few years, then the other projects will proceed. That being said, I'd like to see the Hotel Penn landmarked. It was a stunning building and can be restored.

[JayPro]

Originally Posted by reencharles

What the hell ... I can not believe it. This was one of the best projects in New York, super tall and still very close to the Empire State. As stated in a previous review, was the chance to proof that we can build something as large near the ESB.
Regrettable. For me it was one of the worst news of the year.

But the thing is: everything was good to be true.

Again...not cancelled. This apparently needs to be shelved as a matter of making sure that the developers and builders of this, 150 & 200G, and Manhattan West have all their ducks in a row in every respect (Seed money, tenants, the property needed to build on etc.).
I don't really blame the decision-makers here, as much as I too wish it didn't have to come to this. But the last thing we need is to break ground on a long-anticipated supertall, only to find out halfway thru construction that one extremely important "i" remained undotted here and an equally valuable "t" uncrossed there, all of which means the financial wherewithal to bring the project to completion goes poof.
Everything needs to be in place; and many real-world scenarios beyond the control of the average skyscraper enthusiast must determine how long that process takes. Until then, those of us who don't use Photoshop to create "New York 2018" cityscapes can only dream...
Or learn Photoshop...
That is, if they can afford it and/or it runs sans hitch on their machines.

Another good thing is we shall soon witness the birth of Hudson Yards as Midtown's newest hub. Then there's Tower Verre, the invasion of the supertall at 57th Street, the amazing dual renaissance of downtown Brooklyn and Long Island City and more. A mind-blowing array of projects, some in their formative stages and others biding their time till more favorable circumstances occur, is out there for us to enjoy keeping tabs on.

[NYC4Life]

So while Brookfield and Related each begin work on their respective projects, Vornado execs will sit back and play spectator in their run down hotel rooms, nice.

[NYC2ATX]

I don't wanna be that guy, but this was my least favorite building of all the proposed 34th Street/Hudson Yards towers. The design was uninspired and felt like it was a carbon copy of the future Transbay Tower in San Francisco, a design which itself is rather uninteresting to me. ...so I kind of hope this returns with a new design in the future.

I mean, if it's in proximity to one of the greatest skyscrapers of the Modern era, it should be a little more impressive, don't you think?

[Don098]

I wholeheartedly agree with you...bring on a redesign in a few years and we'll talk. Design was bland, and juxtaposed next to the great Empire State Building, it never fit the bill IMO.

[Zapatan]

Not at all surprising, NY already has three 300 meter buildings going up.

Hopefully they can take the time to make a nice redesign, maybe even a height increase.

But if this gets cancelled that'll be nothing new either, They say only 1/3 of supertall proposals go through... if that. I don't see why people expected NY's skyline to be so different in just a few years.

Aren't the other westside towers (the 1280 anf 1000 footer) supposed to start construction next year? That'll be good.


EDIT: Oh the hotel is being rennovated. Yea this building will never be built. The other supertall proposals in NY probably won't either I guess...

Sad sad news, but coming from NYC, again, no surprise. NYC is losing its' skyscraper capital status faster and faster and will never keep up.

[NYguy]

Originally Posted by StatenIslander237

I don't wanna be that guy, but this was my least favorite building of all the proposed 34th Street/Hudson Yards towers. The design was uninspired and felt like it was a carbon copy of the future Transbay Tower in San Francisco, a design which itself is rather uninteresting to me. ...so I kind of hope this returns with a new design in the future.

New design means new approval process. The tower that was approved was for the two specific designs that we have. I highly doubt Vornado is going to go back to that process, which could potentially be under anoher administration. And the reason we have two designs is so Vornado can build for specific market conditions.

This tower might not even be built in the coming wave, but with all of the companies looking for space, even the WTC, Hudson Yards, and Manhattan West won't be a fit for everyone. Keep an eye on the market and what's being built where. Also keep an eye on the Moynihan Station development. Vornado could be building at the Penn East site before they build here.

[RobertWalpole]

Originally Posted by Zapatan

Not at all surprising, NY already has three 300 meter buildings going up.

EDIT: Oh the hotel is being rennovated. Yea this building will never be built. The other supertall proposals in NY probably won't either I guess...

Sad sad news, but coming from NYC, again, no surprise. NYC is losing its' skyscraper capital status faster and faster and will never keep up.

Incorrect, Mr. Schadenfreud/"I love NY." This will be built. The financial capital of the world needs the space. However, Related came onto the scene with 6m sf of space at heavily discounted prices that other developers can't match. It's kind of like Chinese-government sponsored companies violating WTO, anti-dumping laws by selling subsidized solar panels, etc. at prices that US and EU manufacturers simply can't match.

FINANCIAL CAPITAL OF THE WORLD

[Zapatan]

The article said that the hotel is being redone, that means the tower will never be built ^

I feel like the extra space is not needed considering the amount of towers going up.

[yankeesfan1000]

As has been said, this is not cancelled. The Hudson Yards can offer significantly lower rents than their competitors, the WTC has cranes on site, and Brookfields building their deck in January. This will be built but again probably not for several years. The area around Penn Station, the busiest train station in the country, is incredibly underdeveloped, outside of 1 Penn. It's frankly shocking it's taken this long for a building of this size be planned for the area. Over the next decade or so as Mohynihan Station rumbles along this area will see a considerable amount of development.

Zap: just because the hotel is being redone doesn't mean the tower wont be built. Show us where in the article it says the tower is cancelled. I openly admit this will not be built for several years, or we won't see any significant move towards construction for the better part of a decade, but this isn't cancelled...

[NYguy]

Renovation has always been an option as long as tower construction wasn't imminent.

Originally Posted by NYguy

http://www.observer.com/2009/real-es...e-office-tower

Finally, Check-Out Time for Hotel Penn?
Landlord Vornado launches rezoning push to replace creaky lodge with big office tower

by Eliot Brown
January 2, 2009


Steve Roth’s Vornado Realty Trust has filed an application with the city to rezone the site of the 90-year-old Hotel Pennsylvania, clearing hurdles for the real estate firm to demolish the hotel and build an office tower of up to 2.85 million square feet in its place.

Mr. Roth, Vornado's chairman, has long billed the 1.4 million-square-foot hotel site as a prime development parcel, part of what he imagines as a completely remade office district surrounding Penn Station (Vornado owns about 7 million square feet of commercial space in the area and has the potential to develop millions more if the redevelopment of the station, known as Moynihan Station, ever happens). He previously called the hotel “a placeholder, sort of like a parking lot, but in this case with $22 million of earnings.”

Vornado has told officials and community members that they have not made any final decision to raze the hotel, and the firm is undergoing this process in order to keep its options open (executives previously said they were considering renovating the hotel).