Vornado Realty Trust Expands Transformation in PENN Neighborhood
Vornado Realty Trust is set to enhance the PENN area, block by block.
The prominent real estate investment trust aims to develop a “cohesive street-level experience” along both sides of Seventh Avenue between West 33rd and 34th Streets, replacing what Chairman Steve Ross referred to as “junky retail stores.”
In recent years, Vornado has been quietly acquiring lots in rather ordinary, yet high-traffic sections of the city. Next, it appears they plan to demolish a small, unattractive building on the east side, followed by the one on the west side. Tenants currently there operate under short-term leases.
Mr. Ross has tasked Newmark’s adept leasing team, led by Mark Massinter, to revamp older stores to better align with the reinvigorated area around Penn Station and Madison Square Garden. Vornado has invested $2.5 billion in revamping an old office tower, introducing restaurant and shopping options in Moynihan Train Hall, and establishing a busy public plaza on West 33rd Street between Seventh and Eighth Avenues.
The leasing team at Newmark also includes Karen Bellantoni, Jackie Totolo, Pierce Thompson, and Nick Machinter.
The district now offers over 5 million square feet of premium office space, 300,000 square feet of public plaza, and several dining options, like the large newcomers Avra and Blue Ribbon Steak & Sushi in the Moynihan Building. Vornado is also managing Primark, which is launching its U.S. flagship store at 150 West 34th Street.
The new store on Seventh Street will occupy a three-story space aimed more at traditional retail rather than restaurants or fast food. Demolition of the old building is expected to commence later this year, with plans to complete the new space by 2027.
Ross hinted at these developments during Vornado’s third-quarter earnings call in November but opted not to share further specifics. He expressed intentions to replace the street’s “junk” retail offerings and to lead efforts in revitalizing the busy but aging 34th Street/7th Avenue subway station.
Glenn Weiss, vice president and co-head of real estate at Vornado, noted that the company’s commitment to transforming the area is clear. Partnering with Newmark, they aim to elevate the Penn District’s retail scene to new heights.
In a separate venture, a new skyscraper is planned for the site of the Hotel Pennsylvania. While no definitive plans have been announced, Ross mentioned last fall that discussions are underway with a major tenant to anchor this anticipated 1,000-foot tower.
In other news, the retail community recently mourned the loss of C. Bradley Mendelsohn, a significant figure who contributed over 40 years at CBRE, Cushman & Wakefield, and Colliers International.
Mendelsohn was instrumental in iconic deals like the launch of Toys R Us in Times Square, once the world’s largest toy store, and facilitated the introduction of three luxury tenants at the former 666 Fifth Avenue. His professionalism won him respect from both landlords and tenants. Journalists appreciated his insights, while coworkers cherished his weekly homemade cookies.
He was a well-regarded individual, admired for many reasons throughout the years.
Meanwhile, the recent opening of Milk & Honey Cafe at 1515 Surf Avenue in LCOR has brightened the dual-tower project facing the Coney Island Boardwalk.
This new Milk & Honey location, the third in Brooklyn, joins existing establishments in Ditmas Park and Bay Ridge. Restaurant owner Yasser “Max” Habib remarked that the beachside setting within a modern building makes it an ideal spot.
The rental building is part of a significant housing boom along Surf Avenue, which has radically transformed over the past decade.
With 463 apartments, the project is already 75% leased, including all 139 affordable units that are fully occupied.
