News Summary
Vornado Realty Trust plans to construct a 475-unit apartment tower near Penn Station at a cost of approximately $350 million. The project, aimed at revitalizing the area, will include affordable housing options, although specific details are yet to be disclosed. As Vornado shifts focus from office space to residential development, the project underscores the company’s long-term vision to transform the Penn Station area into a mixed-use neighborhood, akin to Hudson Yards.
New York City Unveils Plans for 475-Unit Apartment Tower Near Penn Station
New York City is set to welcome a new apartment complex, as Vornado Realty Trust has announced a plan for a tall residential tower across from Penn Station and Madison Square Garden. This ambitious initiative is expected to cost approximately $350 million and will feature 475 residential units.
The planned development will be situated at the northeast corner of West 34th Street and Eighth Avenue, an area that Vornado aims to revitalize significantly. The introduction of affordable housing is a central component of this project, and Vornado intends to leverage the state program 485-x, which provides tax incentives for developments that integrate affordable housing options. However, specific details regarding the allocation of affordable units within the project are yet to be shared.
Investment and Development Plans
Vornado’s President, Michael Franco, discussed the project during a recent investor conference, highlighting the company’s dedication to improving the neighborhood around Penn Station. Vornado currently owns approximately 20 million square feet of commercial space in this area, including ongoing renovation efforts at the office towers Penn 1 and Penn 2, into which the company has already invested $1.2 billion.
As part of the overall development strategy, Vornado plans to construct an enclosed pedestrian bridge over West 33rd Street aimed at enhancing pedestrian movement between the second floors of the two office towers. However, this initiative has raised concerns about potential obstruction of views of the iconic Empire State Building.
Shift Towards Residential Development
Over recent years, Vornado’s leadership has signaled a strategic pivot from primarily focusing on office space to residential properties as demand for housing in New York City continues to grow. CEO Steven Roth has expressed a keen interest in initiating construction on the West 34th and Eighth Avenue project in the near future.
Additionally, Vornado is looking into divesting from certain properties, including their Merchandise Mart in Chicago and a location in San Francisco, which demonstrates the company’s strategic realignment in an evolving market.
Long-term Vision and Community Impact
Vornado’s long-term vision for the Penn Station area includes the development of a series of striking mixed-use towers similar to the successful Hudson Yards project. However, these ambitious plans have faced delays due to the pandemic and continuing requests from local elected officials to prioritize housing development amid ongoing housing challenges in the city.
This proposed apartment complex marks a significant step in Vornado’s larger strategy to reposition its portfolio toward housing, likely responding to the heightened demand for residential options in the urban environment. As plans unfold and construction begins, the outcome of this project could play a vital role in shaping the future landscape of one of New York City’s busiest transit hubs.
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Additional Resources
- Crain’s New York
- NY YIMBY
- NY Daily News
- Central Park
- Fox 5 NY
- Wikipedia: New York City
- Google Search: New York real estate development
- Google Scholar: New York City housing development
- Encyclopedia Britannica: New York City
- Google News: Vornado Realty Trust
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
