Related, Vornado struggle to make Penn Station expansion work

New York /
Jul.July 25, 2011 09:42 AM

Related Companies and Vornado Realty Trust, the developers of a long-planned expansion of Pennsylvania Station into neighboring James A. Farley Post Office, have told government officials that they’re struggling to make the terms of their five-year-old deal work, the Wall Street Journal reported. According to a timetable laid out last year, final terms of their financial agreement are to be solidified with the state by the end of this year.

In 2006, the developers agreed to pay more than $310 million for rights to develop retail in the rear of the building, but now they’re seeing that the building needs to be more mixed-use, the Journal said.

In recent months, they’ve approached the City University of New York to see if it might be interested in a small campus in the back of the building as part of a land swap plan with the Tribeca-based Borough of Manhattan Community College, but CUNY officials did not bite.

The site has also been shown to to Nordstrom and Target, though neither retailer has committed to the building.

In all, the expansion project is slated to cost over $1 billion. [WSJ]


Related Articles

arrow_forward_ios
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
Related is the latest developer to target the Rockaways
Related is the latest developer to target the Rockaways
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)
Free and clear: Vornado pays off debt at 220 CPS
Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Andrew Penson and SL Green in fight to control Times Square hotel
Andrew Penson and SL Green in fight to control Times Square hotel
Andrew Penson and SL Green in fight to control Times Square hotel
Renderings of 2 Penn with Vornado CEO Steven Roth and MSG Entertainment CEO James Dolan (Vornado, Getty)
MSG Entertainment re-ups at Vornado’s 2 Penn for 428K sf
MSG Entertainment re-ups at Vornado’s 2 Penn for 428K sf
Boston Properties’ Owen Thomas, Vornado Realty Trust’s Steve Roth, Paramount Group’s Albert Behler, SL Green’s Marc Holliday and Empire Real Estate Trust’s Tony Malkin  (iStock, slgreen.com, vno.com, paramount-group.com, esrtreit.com, LinkedIn)
Office landlords profess optimism despite dip in occupancy
Office landlords profess optimism despite dip in occupancy
Vornado Realty Trust CEO Steven Roth with 220 Central Park South (Getty)
Vornado’s 220 Central Park South approaches $3B in total sales
Vornado’s 220 Central Park South approaches $3B in total sales
Governor Kathy Hochul (Getty)
Hochul downsizes Cuomo’s Penn Station plan
Hochul downsizes Cuomo’s Penn Station plan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...