Vornado Realty Trust is the company that recently purchased the Filene’s building in Downtown Crossing (across the street from the transvestite mannequins at Macy’s), and is making plans to build one or more high-rises on that block.
Meanwhile, in Gotham City, Vornado is undertaking a much-larger project – they are deeply involved in the plans to move Penn Station (Amtrak and commuter rail) across the street to where the US Post Office stands now (which seems like a great idea, except for all those stairs), and replacing the station with three or four new high-rises.
(It’s part of an even grander plan to move Madison Square Garden to a space behind the post office … it’s confusing.)
Vornado already owns a lot of land (buildings) in the neighborhood.
The proposal to move Madison Square Garden and remake Penn Station would create a billion dollar profit for Vornado Realty Trust, which has bought up much of the real estate around the Garden over the past 10 years.
The chairman of Vornado, Steven Roth, told investors yesterday that the plan would generate “$1.2 billion in value creation,” from the higher rents Vornado would command on nearly 7 million square feet of property in the near vicinity.
“We are about making money here on a grand scale,” Mr. Roth said at the REITWeek conference at the Waldorf-Astoria.
Keep all this in mind when you start hearing the developer “cry poor” and ask for city assistance in building anything at Downtown Crossing.
Complete story: ‘Grand’ Profits in Garden Deal Is Vornado’s Boast to Investors – By David Lombino, The New York Sun