NEW YORK | 144 W 34th St | Ft | M | Stories

[JR Ewing]

Vornado just bought this structure which extends to 33rd Street, and it already owns several contiguous structures, including 435 7th Avenue. Bet your bottom dollar that something big will rise here, lads.

SPECTRE1000!


Vornado buys Herald Sq. Old Navy for $355M: sources

Deal with Starwood and Crown expands REIT's dominion on 34th St.
June 02, 2015 04:41PM
By Adam Pincus



From left: Doug Harmon, Adam Spies, the Old Navy building at 144-150 West 34th Street and Steve Roth
Vornado Realty Trust just closed on the $355 million acquisition of the Old Navy building in Herald Square, The Real Deal has learned, just over a year after a partnership between Starwood Capital Group and Crown Acquisitions bought it for $252 million.
With the deal for the three-story, 78,000-square-foot building at 144-150 West 34th Street, the Steven Roth-led real estate investment trust gains control of another prime retail property in a neighborhood where it has been assembling assets for decades. The site on which the property sits could be redeveloped into a 300,000-square-foot retail and hotel tower, using unused air rights, according to sources.
Old Navy has about five years remaining on its lease, which industry insiders described as far below market-rate. Average ground-floor rents in the area hit $1,000 per square foot for the first time this spring, a report from the Real Estate Board of New York released in May shows. Retailers have been bullish on the area as the local anchor, Macy’s, has seen its annual sales surge from $600 million to $1 billion over the past five years, one industry source said.
Eastdil Secured’s Adam Spies and Doug Harmon represented both parties in the deal. They declined to comment, as did representatives for Crown, which is controlled by the Chera family. Representatives for Vornado and Starwood couldn’t be reached.
“Vornado owns over six million square feet in the 34th Street district,” said Lisa Rosenthal, a broker with Lansco who was not involved in the deal. “This is just them consolidating that. Now they can really dictate the destiny of the district.”
- See more at: http://therealdeal.com/blog/2015/06/....cH5NNWF4.dpuf

http://therealdeal.com/blog/2015/06/...-355m-sources/

[scalziand]

About time that all the junk on this block goes.

[Crawford]

So we know that Snohetta, the Norweigan architecture firm, is working on a major redevelopment of Vornado's Penn Station-area holdings.

Could Snohetta be desiging a tower for this site?

[sparkling]

Vornado secures $205M loan for Old Navy building
REIT bought Herald Square retail property for $355M earlier this month

Rey Mashayekhi
June 17, 2015 12:01PM

Vornado Realty Trust received a $205 million acquisition loan from Morgan Stanley to help finance its purchase of the Old Navy building in Herald Square.

Vornado bought the three-story building, located at 144-150 West 34th Street, for $35 million earlier this month from a partnership between Starwood Capital Group and Crown Acquisitions, as The Real Deal reported.

Starwood and Crown paid $252 million to acquire the retail property from KLM Construction last year, according to the New York Observer. Morgan Stanley also helped finance that deal, lending $175 million to the partnership.

Vornado’s three-year loan bears an interest rate of 2.25 points over Libor and two one-year extension options. The 78,000-square-foot building is fully leased to Old Navy, whose term expires in May 2019.

The property also contains air rights allowing for 300,000 square feet of redevelopment. - See more at: http://therealdeal.com/blog/2015/06/....THHDDzby.dpuf

[colemonkee]

300,000 square feet isn't that big, though. They'll need to secure pretty significant additional air rights to build anything of size here.

[chris08876]

400-500 footer maybe? If its anything like the hotels that have been popping around the area, sounds like something close to it.

[JR Ewing]

Originally Posted by colemonkee

300,000 square feet isn't that big, though. They'll need to secure pretty significant additional air rights to build anything of size here.

They own the adjacent building on the corner of 7th, which has a lot of air rights, and I suspect that they own (through LLCs) a lot of the small, adjacent properties on W 34th. Those that they don't own, they likely will acquire.

[The New York Lion]

I'm betting this will be similar in height to 15 Penn Plaza, which Vornado always plans to build.

It is truly amazing the amount of supertalls that will be popping up in a highly developed and highly competitive city within the next 5-10 years.

[chris08876]

Lets hope Lion. With the right amount of development rights, and properties acquired, this could be another one.

[njcco]

If Vornado builds a hotel here, would that incent them to (finally) close and raze the disgusting Hotel Pennsylvania and build 15 Penn?

[JR Ewing]

Originally Posted by njcco

If Vornado builds a hotel here, would that incent them to (finally) close and raze the disgusting Hotel Pennsylvania and build 15 Penn?

15 Penn eventually will rise, but it might take up to 20 years. Personally, I'd like to see it restored and have the air rights transferred, though I doubt that will happen.

[scalziand]

Originally Posted by JR Ewing

15 Penn eventually will rise, but it might take up to 20 years. Personally, I'd like to see it restored and have the air rights transferred, though I doubt that will happen.

My personal vision for that site is to use the airrights in a vertical expansion. Put some cores/elevators in the light wells, and cantilever the new structure over the existing hotel.

[JR Ewing]

I agree, but that won't happen. The Hotel Penn will be razed once Roth finds a tenant.

[chris08876]

Originally Posted by JR Ewing

I agree, but that won't happen. The Hotel Penn will be razed once Roth finds a tenant.

Its relieving to know that it will happen but is stuck in a WTC2 limbo where all that is needed is a tenant. 15 Penn is one I'm really looking forward. Shame JP Morgan can't take the space. Ideal location transit wise. I hope its not 20 years but I can see how notoriously hard it can be to land a tenant.