Vornado, Stellar Plan for Independence Plaza Expansion

Vornado Realty Trust and Stellar Management are finally ready to expand Independence Plaza.

A joint venture between the two developers filed plans for a 72-story, 976-unit building in the vicinity of 310 Greenwich Street in Tribeca, the Commercial Observer reported. The complex already includes 1,328 units across three buildings, 40 percent of which are rent-regulated or affordable.

The development was revealed last year, but was short on details and the plans appeared to be held up as the City of Yes legislation made its way through the city.

One of the most significant takeaways from the New York City Department of City Planning filing pertains to affordable housing. There can either be 251 affordable units in the building or units built elsewhere under the Universal Affordability Preference program.

The filing was first reported by PincusCo, which noted a contentious 2024 community meeting where residents voiced concerns ranging about construction-related noise and dust, as well as potential structural risk to historic townhouses nearby.

Vornado and Stellar are also poised to avoid ULURP as they push a “modification” of the larger site plan, negating the need for any zoning changes. The project will still need an environmental review, among other approvals.

“We look forward to continuing to work with residents, neighbors and key stakeholders in the months ahead to ensure this project reflects the needs of both the city and the people that live and work here,” a spokesperson for the project told the Observer.

In the last five years, the joint venture has spent $33 million to upgrade the complex. It plans to spend another $15 million in community benefits in the next two years.

Last year, the developers secured $675 million in CMBS financing to refinance Independence Plaza. The five-year loan replaced existing debt and was provided by a consortium of lenders, including Deutsche Bank, Wells Fargo, Bank of America and Morgan Stanley.

The complex was initially rent-regulated under the Mitchell-Lama program, but transitioned when Stellar bought into the property in 2003. Amenities include a fitness center, a swimming pool, a children’s playroom and laundry facilities. There’s also 55,000 square feet of retail space.

Vornado bought a majority share of the complex in 2012 as it looked to make at least half of the apartments market-rate units. In 2018, Goldman Sachs provided a seven-year, $675 million loan, which was securitized into a single-asset mortgage-backed securities deal.

— Holden Walter-Warner