Vornado Realty Trust has unveiled long-rumored plans for a new apartment building across from Madison Square Garden and Penn Station. As first reported by Crain’s, Vornado President Michael Franco said during an investor conference last week that the firm will spend roughly $350 million to build a 475-unit rental at the northeast corner of West 34th Street and Eighth Avenue, across the street from the World’s Most Famous Arena (and most infamous transit hub). The project is part of Vornado’s broader effort to redevelop the blocks around Penn Station, an effort slowed in recent years by market conditions.
Vornado owns 20 million square feet of commercial space in the area and has already invested $1.2 billion in redeveloping Penn 1 and Penn 2. The firm also recently unveiled plans for an enclosed pedestrian bridge over West 33rd Street, linking the second floors of the two towers, Crain’s reported.
While better known for its large portfolio of office towers, Vornado has also developed apartments, including the supertall 220 Central Park South, and owns half of a former Mitchell-Lama property in Tribeca, Independence Plaza.
In April, Vornado CEO Steven Roth said he was ready to sell office buildings and develop apartments, with work set to begin “shortly” at the corner of West 34th Street and 8th Avenue.
The number of affordable units remains unclear, as Vornado declined to share additional details. However, the firm intends to use the 485-x tax abatement program, which requires affordable housing.
“People really want to live in New York. There is a major shortage of apartments in New York,” Roth wrote to Crain’s. “So why aren’t we building some apartments? A very good question.”
Gov. Kathy Hochul tapped Vornado in 2022 to help redevelop the area around Penn Station. Under the plan, the firm would transform 18 million square feet of the neighborhood, with tax revenue generated by the project funding the reconstruction of the transit hub.
However, in February 2023, the project was put on pause due to the pandemic’s impact on in-person work, rising office vacancies, and high interest rates.
Over on 7th Avenue, Vornado floated the idea of transforming the former Hotel Pennsylvania into a temporary 80,000-square-foot outdoor venue.
The space could host U.S. Open tennis matches, New York Fashion Week shows, concerts, soccer matches, and more. No work is currently being done at the site, however.
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