Vornado Realty Trust

Last November, the Post's Steve Cuozzo railed against the campaign to preserve Hotel Pennsylvania, which he called "one of the gloomiest structures between the Battery and The Bronx."

Now, the paper is listing the old Glenn Miller hangout among its "10 Endangered Buildings Worth Saving" -- No. 2, in fact, just behind Harlem's Corn Exchange Bank.

Built in 1919 by the Pennsylvania Railroad as part of Penn Station's development. Designed by McKim, Mead & White, and now owned by one of the developers involved in Moynihan Station, it has been engulfed by that controversy. Worst-case scenario: no Moynihan Station and a demolished Hotel Pennsylvania.

On Sept. 19, a full six months after Wall Street began its catastrophic decline with the demise of Bear Stearns, and just four days after Lehman Brothers, New York real estate financier extraordinaire, collapsed, two publicly traded real estate companies rode high on the stock market, functioning, apparently, in an alternate universe.

That Friday, SL Green, New York City’s largest commercial property holder, traded at $73.75 a share. AvalonBay Communities, which has luxury residential developments downtown and in Long Island City, traded at a stunning 52-week high of $113.07.

They weren’t the only REITs defying the gravity of the situation.  read more »

Above is a rendering of the would-be Richard Rogers-designed tower atop the Port Authority Bus Terminal. (Hat tip: Curbed).

One-time demolition target Hotel Pennsylvania continues to line landlord Steve Roth's pockets, giving him even more reason to hang on to the old McKim, Mead & White-designed lodge. Quarterly figures released this week by Mr. Roth's Vornado Realty Trust show the historic hotel generating even more revenue than last year -- a total of nearly $30 million so far through the first nine months of 2008.

That's about $5 million more than it made over the same timeframe in 2007, when the hotel ultimately netted $37.9 million.  read more »

Harlem's most ubiquitous activist and resident Cassandra, Sikhulu Shange, has been warning against the perils of gentrification and the displacement of small businesses in the community for decades. He became living proof of his most dire prophesies this summer when he was forced to close his iconic music store on 125th Street, the Record Shack, after losing a two-year legal battle with his landlord.

A team of city marshals seized all of his inventory and evicted him on July 24 from the store he occupied for 36 years -- more than three months after the May 31 deadline a civil court judge had given Mr.  read more »

If there’s any dynast in New York who can eye the ravaging fires of Wall Street with some degree of equanimity, it’s Douglas Durst, he of the just-topped-off, just-filled-up Class A tower at One Bryant Park, anchor-tenanted by none other than the impressively solvent, indeed expanding, Bank of America. Quite the power couple, eh? 

If they’re the winners in this ordeal, they are overshadowed by the carcasses littering a roadway paved by the credit crisis.

“Today’s really a crash of the New York real estate market,” said Tomasz Piskorski, assistant professor in the finance and economics division at Columbia Business School, on Monday.  read more »

Much of Governor Paterson's approach over the last few months has been characterized by telling New Yorkers what they will not have under a Paterson administration. There will not be flush state coffers (and there will be cuts); there will not be a finished World Trade Center by 2012; there will not be enough money to fund an M.T.A. capital plan. Money is short, campaign promises were none, so cutting back has become issue No. 1.

But today, invoking the success of projects built during the Great Depression such as the Lincoln Tunnel and much of the New York City subway system, Mr.  read more »

After three years of court fights with booze- and noise-wary neighbors over its liquor license and live music program, embattled Lola restaurant at 5-15 Watts Street has filed for Chapter 11 bankruptcy protection.

In addition to mounting unpaid legal bills -- nearly $100,000 and counting -- proprietors Gayle Patrick-Odeen and Tom Patrick-Odeen also owe landlord Vornado Realty more than $100,000 in back rent, "as a result of [their] inability to generate significant income from [the restaurant's] trademark live performances," according to court papers.

On Aug. 20, Vornado threatened to terminate the restaurant's 15-year lease if the money was not paid in full. The restaurant has filed for bankruptcy in order to "preserve its valuable leasehold interest," the court papers show.

The restaurant is now "holding 3 nightly performance sets in hopes of successfully rebounding from their financial setbacks."

The planned redevelopment and expansion of Penn Station, a top priority of the Spitzer administration, needs to include transportation improvements in order to be a "favorable investment" of the state's resources, Governor Paterson said today.

"What is essential to Moynihan Station is that it be a viable transportation hub," he said, speaking at a Crain's New York breakfast this morning. "If it doesn't include the transportation, its value diminishes considerably as far as I'm concerned."

The remarks suggest yet another turn in the project's long history, with yet another desire to expand its scope. The project, named Moynihan Station in honor of the late senator who championed it, has sat on the drawing boards since at least the early 1990s,  read more »

Vornado Realty Trust isn't hell-bent on demolishing the historic Hotel Pennsylvania, anymore -- but it's putting the paperwork in place, just in case.

Vornado recently applied for a Certification of No Harassment from the city, which, if granted, would by no means guarantee demolition but is apparently a prerequisite for tearing down the semi-grungy hotel across from Penn Station.

Vornado, which owns that site and many others in the area, hasn't made up its mind on what to do with the hotel (at least not publicly), and last word was that the company would do one of three things: put a giant office tower in its place, put a smaller office tower in its place with large retail, or simply spruce up the hotel.  read more »

Governor Paterson said today that his administration has asked the developers of the planned redevelopment of Pennsylvania Station to come back with a new plan, showing the first public sign of life in the project in months.

In a Q&A on WCBS radio, Mr. Paterson was asked about the status of the long-delayed project, known as Moynihan Station.

"We have asked the developers of the potential Moynihan Station to come back to us with another plan that particularly features the subject we've been talking about today--transportation," Mr. Paterson said. "Already we have addressed with them the dwindling supply of revenues that we as the state can put into the plan, and we're expecting an answer form them within a week or two.  read more »

The Port Authority at its board meeting this afternoon is taking a look at three possible designs for the planned tower over its bus terminal, with the firms of Richard Rogers, Cesar Pelli and Kohn Pedersen Fox all submitting plans.

Steve Roth's Vornado, in the hunt for an anchor tenant, is the developer for the tower, which would sit across the street from the Renzo Piano-designed New York Times building.

Pelli Clarke Pelli designed the Bloomberg tower on Lexington Avenue for Vornado; Mr. Rogers' firm designed the planned Tower 3 at the World Trade Center; and KPF was signed on for JPMorgan Chase's now-scuttled new investment banking headquarters (with a notable goiter for trading floors) downtown.

Images below.  read more »

Vornado Realty Trust CEO Steve Roth is considering a design by Pritzker Prize-winning architect Richard Rogers for his planned office tower atop the Port Authority Bus terminal, a Port Authority official confirmed.

The design by Mr. Rogers, along with two other designs (New York-based SHoP was said to be working on a design for the tower at one point), is expected to be presented at today's Port Authority board meeting.

Mr. Rogers, whose works include the planned Tower 3 at the World Trade Center and the Centre Pompidou in Paris, recently withdrew from a nearby project: the now scuttled Javits Center expansion.

We'll (hopefully) have more after the meeting at 1:30.

Veteran punk rocker Jello Biafra didn’t trash his hotel room during a recent trip to New York. It was already trashed.

“The air-conditioners are so old and beat up, I figure why waste electrical power during an energy crunch when I can just take off all my clothes and work nude?” quipped Mr. Biafra, the 50-year-old former lead singer of the irreverent Reagan-era rock band the Dead Kennedys and a onetime fringe presidential candidate. “I come from cold, foggy San Francisco, so I like it when the heat is sweltering. It’s a nice treat to work nude.”

He was staying at the historic Hotel Pennsylvania, a veritable musical landmark befitting the songwriter responsible for the satirical travel anthem “Holiday in Cambodia.  read more »

Fundraising may have gone slower than before for City Council Speaker Christine Quinn lately amid the discretionary spending imbroglio, but she still hauled in a fair hunk of cash--more than $620,000--in the past six months, according to her campaign filing.

Of that amount, the bulk--$410,0000--came in the three months since the Post first revealed the Council's so-called "slush fund," which in turn led to day after day of headlines questioning various appropriations made by Council members.

A look at her intermediaries (known as bundlers) doing much of the fundraising suggests the traditional source: the real estate industry is still hard at work.  read more »

In case there was any doubt, Steve Roth and Steve Ross really want Madison Square Garden to move.

This morning, some 13 weeks after Madison Square Garden announced it was renovating and staying in place (i.e. not moving), the developer duo professed, once again, their eagerness to see the Paterson administration pick up the ball and move forward with the large-scale Moynihan Station plan. The plan, in its most recent iteration, would involve the state using Port Authority money intended for regional transportation projects to buy the Garden and its air rights from the Dolan family—that is, if they’re willing to sell (the Dolans have expressed no interest and are moving forward with the renovation).  read more »

West 57th Street is to its easterly counterpart what a deer-hunting, RV-driving homeowner is to his McMansion-owning neighbor—an embarrassment.  read more »

Joe O's, the casual sports bar and restaurant in the Hotel Pennsylvania and home to the $13 Vornado pizza -- presumably, an ass-kissing tribute to hotel landlord Steve Roth's ginormous real estate company -- has been shuttered.

Its windows along West 33rd Street have been blacked out, with only a sign hanging from the outside scaffolding to remind passersby of its former presence.  read more »

After months of talk about demolishing the historic Hotel Pennsylvania to make way for a soaring office tower, landlord Vornado Realty Trust has acknowledged that it might just hang on to the McKim, Mead & White-designed, Dave Barry-panned, so-called "World's Most Popular Hotel," after all.

"First off, it is doing damn well as a hotel," Vornado CEO Steven Roth said Tuesday during a conference call with investors.

Indeed, the 1,700-room lodge that Vornado previously described as "a placeholder, sort of like a parking lot," brought in nearly $38 million in 2007, as The Observer earlier reported. (That's $10.5 million more than in 2006.)

Imagine how much the run-down hotel might make after a significant renovation, which Vornado is now apparently considering.  read more »

Vornado Realty Trust CEO Steve Roth told investors Tuesday that he wants to redo Penn Station in a scaled-back version of the grand Moynihan Station plan, moving Madison Square Garden’s WaMu theater out of the arena structure to make way for a large train station entrance hall.

Despite a push by Vornado and co-developer Related Companies to keep the larger-scale project alive via government support, Mr. Roth indicated he considers that scenario unlikely.

“[We] basically feel that something good is going to happen,” he said. “Either that the governments are going to get their acts together, which they probably will not, or ... we have with Madison Square Garden a Plan B, which is they stay where they are, we take out the theater, we—underneath the seating bowl of the arena—put a new grand entrance to Eighth Avenue and a new grand entrance to the station on Seventh Avenue, and what that will do is create a grand train station. Not quite as grand as moving it, but pretty nice. Actually, spectacularly nice.”  read more »

When Madison Square Garden unceremoniously announced on March 27, via late-afternoon calls to reporters, that it was moving forward on a renovation of its arena, it seemed to be the death blow to the planned redevelopment of Pennsylvania Station and the surrounding area. The Garden, led by chairman James Dolan, was exhausted with the lack of progress in a slow-moving, state-led plan to remake and expand the station, to be called Moynihan Station, which required the Garden’s moving to a new arena in the neighboring Farley Post Office.  read more »

Now it's really official: the M.T.A. board this afternoon voted to approve a deal with the Related Companies and Goldman Sachs to develop over the 26-acre West Side rail yards.

A few nuggets of rail yards info from the meeting: According to M.T.A. CFO Gary Dellaverson, who summarized negotiations to the board, the key to the Related Companies' victory was its willingness to literally pick up the $1.054 billion Tishman Speyer deal and sign it, only inserting one notable change.  read more »

One of the remaining bidders for the West Side rail yards, a team of the Durst Organizaiton and Vornado Realty Trust, said it is expecting that S.I. Newhouse’s Condé Nast will remain part of its bid as an anchor tenant.

“We expect that Condé would be our partner,” said Durst spokesman Jordan Barowitz.

However, Condé, which began a new search for space after Tishman Speyer was named the winner over the Durst/Vornado team in March, did not make clear its plans, as a company spokeswoman, Maury Perl, declined comment.  read more »

With Tishman Speyer out of the picture at the West Side rail yards, the Metropolitan Transportation Authority is now headed back to the other three bidding teams (Extell Development, the Related Companies, and a joint venture of the Durst Organization and Vornado Realty Trust); that is, if they’re still interested.

The apparent frontrunner, given that it was the runner-up to Tishman in the original bidding, would be Durst/Vornado, the only remaining team in late March with an anchor tenant, S.I. Newhouse’s Condé Nast. If Condé Nast is no longer on board with a move—The Times has reported that Tishman failed to woo them in recent weeks—that could mean trouble for the Durst/Vornado bid, or certainly the value of it.  read more »

No one ever said planning for a train station was cheap.

In a recent filing with the SEC, Vornado Realty Trust wrote off $23 million associated with the “abandonment” of the so-called Moynihan East portion of the Penn Station redevelopment plan.

Taken with planning for the expansion of the station into the Farley Post Office across the street, Vornado, led by Steve Roth, has spent $34.2 million, according to the filing:

The three months ended March 31, 2008 includes a $34,200,000 write-off for our share of two joint ventures’ pre-development costs, of which $23,000,000 represents our 50% share of costs in connection with the abandonment of the “arena move”/Moynihan East portions of the Farley project.

Given that Vornado is in a 50/50 partnership with the Related Companies for the project, the numbers reported by Vornado suggest that the two companies have spent nearly $70 million on the project since they were designated developers in 2005!  read more »

High-powered law firm Paul, Weiss, Rifkind, Wharton & Garrison is in negotiations with Vornado Realty Trust for more than one-third of the tower planned for atop the Port Authority bus station, a move that, if cemented, would extend the legal establishment’s apparently inexorable drift westward from the white-shoe stronghold of midtown.

A source close to the negotiations confirmed that Paul, Weiss is in serious, though early, negotiations to take 500,000 square feet in the middle of the 42-story building slated to rise from a platform atop the seedy bus terminal.  read more »

At least two former Manhattan Mall retailers have sued landlord Steve Roth's Vornado Realty Trust over their recent evictions from the mall to make way for a new 150,000-square-foot J.C. Penney department store.

Proprietors of Pretzel Time and Square One Shoes & Clothing each claim in separate lawsuits that their leases were prematurely and illegally terminated last month.  read more »

Developers Vornado Realty Trust and the Related Companies are grasping for options to keep alive a multibillion dollar redo of Penn Station and related real estate development, as they have asked the city and state to back a loan to build a new Madison Square Garden in the Farley Post Office across Eight Avenue.

The proposal is intended to lure the Garden back to the table, as the company, led by Chairman James Dolan, pulled out of the larger plan in March. The state is considering the offer as one of many options for the project, a state official confirmed.

In this option, the state and city could be saddled with the cost of the arena—said to be in the range of $900 million to $1 billion—should the larger redo of Penn Station ultimately fall apart.  read more »

The folks at the city's Economic Development Corporation sent over the above rendering of the West Side trade show facility we wrote about yesterday. A Vornado Realty Trust subsidiary submitted a winning bid to expand the existing facility, located at Pier 94.

Vornado Realty Trust, led by CEO Steve Roth, has been selected to develop an expanded trade show facility on the far West Side, expanding a modest convention center on Pier 94 into Pier 92.

For Mr. Roth, who recently was inched out by Jerry Speyer in a bid to develop the West Side rail yards, the project is a moderately-sized fish (the project will cost about $100 million, according to the city’s Economic Development Corp.), as opposed to the “elephant” that he’s been looking for (in his letter to investors [PDF] a few weeks back, he wrote that Vornado was “always elephant hunting and this year we missed a few.”)  read more »

With Merrill Lynch staying put downtown and plans to redevelop Penn Station in flux, Vornado CEO Steven Roth may not know what to do with the Hotel Pennsylvania--a building the company once described as "a placeholder, sort of like a parking lot."

In the meantime, the historic lodge continues to make his company some big bucks--netting roughly $37.9 million last year.

That's $10.6 million more than in 2006, according to the company's latest filing with federal regulators, which further added, "This property continues to trend higher in 2008."

With revenues on the rise, does it still make sense to raze it?  read more »

News yesterday that Madison Square Garden's owner, the Dolan family, will renovate instead of moving across the street to the Farley Post Office seemed to doom the planned Moynihan Station, but the head of the project said today he thinks the family's decision "isn't irrevocable."

"We just need a lot of strong public leadership to get to the point where, you know, [the Dolans] see the project as a potential reality," Vishaan Chakrabarti, president of the Moynihan Station Venture (a team of the Related Companies and Vornado Realty Trust) said at a real estate luncheon today. The $14 billion Moynihan project would create a new transit hub to replace the aging Pennsylvania Station.  read more »

Tishman Speyer appears to be in the pole position going into the final stretch of the West Side rail yards saga, as the Metropolitan Transportation Authority, as of this morning, was still negotiating with the firm to hammer out an agreement before Wednesday’s MTA board meeting, according to three people familiar with the talks.  read more »

Late last week, we put up a post about how the Bloomberg administration agreed to exempt a Vornado RealtyTrust-owned site in Harlem from a new height limit to be established on 125th Street as part of a rezoning of the area. The City Council is expected to follow suit.

Getting to such a point, where Vornado would build its 600,000-square-foot Harlem Park office tower at Park Avenue about 40 feet higher than the 290-foot height limit, took a bit of wheeling and dealing.

In order to gain the community’s nod for the tower, and by association the expected approval of local Councilwoman Inez Dickens, Vornado had to work out an agreement with Community Board 11, pledging to give more than $1 million in concessions.  read more »

The path may now be clear for Vornado Realty Trust to build Harlem’s first Class A office tower in decades, as the developer has received the nod from the city to proceed despite a possible rezoning of the area.

Vornado wants to build a tower of about 330 feet, which is 40 feet higher than the height limit in the proposed rezoning.  read more »

At the center of recent concern—voiced by advocates, officials and others involved with the process—surrounding the viability of the redevelopment of Pennsylvania Station is where all the money will come from to fund it. [More on the broader issue here.]

State officials have said the redevelopment of Penn Station, part of a grander project known as Moynihan Station, will cost at least $2.2 billion (with emphasis on “at least”), and there’s a whole lot more funding that needs to be secured.

And while the state and other officials deny the plan is falling apart, expressing optimism, we thought a recap of the various funding commitments and potential sources was in order:  read more »

The city’s Industrial Development Authority had a hearing this morning on a request for subsides at Vornado Realty Trust’s planned Harlem Park development on 125th Street, which would be home to Major League Baseball’s new television network.

Vornado is contending that it needs $7.8 million or so in tax breaks in order to complete the office and retail project, saying in its application to the IDA that the project will benefit the city. MLB wants $2.23 million in breaks to take 132,000 square feet and be an anchor tenant in Vornado’s tower, saying the development will add scores of jobs.  read more »