From the July issue: When Vornado Realty Trust, Related Companies and Skanska finalized a deal with New York State for the creation of a $1.6 billion train hall at the old James A. Farley Post Office last month, it marked an important step in the modernization of Penn Station. Vornado is planning the transformation of One and Two Penn Plaza into a 4.2 million-square-foot tech-focused megacomplex directly above the station, and just west, 18 million square feet of commercial and residential space are being built at Related’s Hudson Yards. Amid all of that development, the neglected infrastructure at Penn Station has left commuters frustrated with Amtrak and New Jersey Transit derailments, as well as Long Island Rail Road and subway delays. Meanwhile, former Delta CEO Richard Anderson will replace Amtrak’s current CEO Wick Moorman in January, according to reports last month. The recent chaos has reminded New York City and neighboring areas just how crucial infrastructure investments — particularly Gateway, the $20 billion expansion of the rail line that connects NYC and Newark — are for the area’s continued economic development. Last month, Gov. Andrew Cuomo tapped developers Steven Roth and Richard LeFrak (who later declined the invitation) for a task force dedicated to addressing the myriad problems at Penn Station. Not only is the real estate industry playing a big role in how the major commuter hub is changing, it has a lot at stake. “The attraction of transit-oriented development is simply based on the fact that people want to get from one place to another as easily as possible, and the extent that they can do that enhances the value of real estate,” Anthony Coscia, the chairman of Amtrak, told The Real Deal. With so much happening in and around Penn Station, we looked to developers and local officials to shine some light on how infrastructure upgrades and new office and residential projects will change the face of the neighborhood.
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Re-penning the nation’s busiest transportation hub
Long-overdue infrastructure upgrades at Penn Station and nearby developments will be a boon to property values in the area
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