Vornado, Silverstein won’t be developing FBI’s new $2B headquarters anytime soon

Federal officials have canceled their search for a developer

New York /
Jul.July 11, 2017 08:03 AM

It looks like Vornado Realty Trust and Silverstein Properties won’t be redeveloping the Federal Bureau of Investigation’s new headquarters anytime soon.

The General Services Administration, the agency that manages federal real estate, is calling off a competition to build a new $2 billion headquarters, the Washington Post reported. Vornado and Silverstein were among the four final bidders on the project. The winners would’ve received roughly $1 billion in federal funds to develop the project, and also would’ve won control over the FBI’s current headquarters in Washington, D.C., the crumbling J. Edgar Hoover Building.

President Trump’s ties to Vornado’s CEO Steve Roth and Larry Silverstein raised some concerns over potential conflicts of interest in selecting a winning bidder. Roth owns a controlling stake in 1290 Sixth Avenue, a Midtown office building that Trump has a non-controlling stake in. Roth also owns a 49.5 percent stake in Kushner Companies’ 666 Fifth Avenue. Silverstein has described Trump as a friend.

The project has also dragged on for several years, draining millions of dollars from real estate developers and the federal government. The GSA is paying rent at dozen locations for many of the FBI’s employees, who outgrew the bureau’s headquarters. [WaPo] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
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
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
(Getty Images)
LA developer doubled as abusive porn director, documentary alleges
LA developer doubled as abusive porn director, documentary alleges
(Getty Images)
Millions of housing units are needed in the US
Millions of housing units are needed in the US
From left: Silverstein Properties CEO Marty Burger; BedRock Real Estate Partners co-founder Tracey Applebaum; Council member Julie Won; a rendering of Innovation QNS in Astoria (Getty, BedRock Real Estate Partners, New York City Council)
Council approves Silverstein, BedRock’s $2B Innovation QNS
Council approves Silverstein, BedRock’s $2B Innovation QNS
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Mayor Eric Adams and Governor Kathy Hochul with Innovation QNS (Getty, Innovation QNS)
Will Innovation QNS happen without 421a?
Will Innovation QNS happen without 421a?
arrow_forward_ios

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

Loading...