Related, Vornado struggle to make Penn Station expansion work

TRD 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

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

Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

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

Related Chairman Stephen Ross (Credit: Getty Images, Wikipedia)

Related drops 700-foot-long “wall” from Hudson Yards plan

Shaun Osher, CORE CEO (Credit: Getty Images and iStock)

CORE becomes latest NY resi brokerage to expand into South Florida

Related Companies chairman Stephen Ross and Hudson Yards (Credit: Getty Images)

Next phase of Hudson Yards could include 700-foot-long wall

Gov. Andrew Cuomo and a rendering of Penn Station (Credit: Getty Images, Governor's Office)

Landlord to Cuomo: “No intention of selling” Penn Station site

A rendering of Empire Station with Governor Andrew Cuomo and JDS Development's Michael Stern (Credit: Getty Images, JDS)

Recycled ideas? Penn Station plan similar to JDS 2016 proposal