NEW YORK | 350 Park Avenue | 1,600 FT | 62 FLOORS

[BoM Trespasser]

Originally Posted by Busy Bee

It would make a great US headquarters for Honda.

haha

[chris08876]

The CR-V Tower.

[NYguy]

https://www.fool.com/earnings/call-t...-call-tra.aspx

Vornado Realty Trust
Q4 2019 Earnings Call

Feb 19, 2020

Michael J. Franco -- President


During 2018, we completed 102 office transactions for 987,000 square feet at starting rents of $82.17 per square foot with positive mark-to-markets of 4.6 cash and 5.5% GAAP. Approximately 20% of our total leasing activity in 2019 was in triple-digits at average starting rents of $120 per square foot.

In terms of the fourth quarter, we leased 173,000 square feet at an average starting rent $101 per square foot. While we had a negative 5.2% cash and 3.5% GAAP mark-to-markets for the quarter, it is worth noting, this was based on only 54,000 square feet of second-generation space and driven by the rent reduction, one short-term renewal at 350 Park Avenue.

This is the single best development site on Park Avenue and likely midtown, and we will be keeping renewals short-term here in order to line up this site to a possible new development.

Alexander Goldfarb -- Piper Sandler & Co. -- Analyst

David, that's helpful. And then the final question is, you guys clearly are not an earning story. You're an NAV story. On the last call, Michael, you talked about Hotel Penn that it's not time yet. You guys are sitting on 350 Park, and I hear comments in the broker community, I was just talking to a guy, [Indecipherable] who was saying that they can't find space under $120 a foot in Plaza District.

At what point do rents on Park Avenue make sense where you can redevelop on Park Avenue, or is the construction cost delta just that far that for those of us thinking about value creation for you guys at 350, it's going to be years out because the math simply doesn't work now or in the foreseeable future. When does the math work?

Michael J. Franco -- President

Alex, look, as I said in my opening comments, we are beginning to take the steps in order to align that site up for new development.

Now we'll make that decision as we get closer to that time based on market conditions and so forth, but the feedback from the brokers community is that that is the best site in town and would be -- would command the highest rents. And so I think we may have even referenced in the past, we have been approached by significant users for an either all or a [Indecipherable] a portion of the new building on the site.

So that is -- in terms of economics, I think it's not a matter if it's working today. It's a matter of can you actually begin the development. And so if you just think about the timing, we have leases that run through really beginning of 2024, Glen?

Glen Weiss -- Executive Vice President-Office Leasing and Co-Head of Real Estate

End of '23.

Michael J. Franco -- President

End of '23. And so that's the earliest that we could begin to take the building down. And so new delivery wouldn't be until '27 or '28. And so it's a significant opportunity, but it's going to take some time in order to bring it to fruition, both in terms of lining up tenancies and then executing on it. So I think if we had the building today could we command a rent to achieve yield necessarily to develop? The answer is we think quite possibly. To build a brand new building that's perfect in that location we think today would command rents that would make that work.

Alexander Goldfarb -- Piper Sandler & Co. -- Analyst

And that would be the JV with Rudin?

Michael J. Franco -- President

The answer is it can go either way, Alex. We can build on our own. We don't need Rudin to build there. We can build a -- probably the best boutique building -- 1 million square foot boutique building on that site on our own, or we can combine with Rudin who is behind this and build close to a 2 million square foot building.

So the answer is, as we continue to move down the tracks here in terms of timing on our leases and what not, this building Blackrock's moving around out to 2023 as well, so they line up for that so we can put them together. But we'll evaluate based on tenant discussions and obviously a tenant for the whole combined building would require a significant pre-lease, which there's interest in. So the answer it's too early to tell which direction it can go, but it is possible.

[JMKeynes]

I like how Vornado acknowledges that it may work with Rudin. The bigger the better!

[NYguy]

Originally Posted by JMKeynes

I like how Vornado acknowledges that it may work with Rudin. The bigger the better!

The plan is for both buildings to come down to create the larger tower, and I'm glad we at least have confirmation on the timing, as leases on both sites will end in 2023.

[Zapatan]

Didn't realize this one was so far off, but I guess it could potentially end up taller?

This is my favorite proposal in NY I think, such a cool building.

[NYguy]

Originally Posted by Zapatan

Didn't realize this one was so far off, but I guess it could potentially end up taller?

This is my favorite proposal in NY I think, such a cool building.

It could always end up taller, but the current proposal is for the larger tower.

[JMKeynes]

Originally Posted by NYguy

The plan is for both buildings to come down to create the larger tower, and I'm glad we at least have confirmation on the timing, as leases on both sites will end in 2023.

I agree. Also, Rudin’s lease with KPMG expires around 2023, and he could let them renew on a short-term basis until 350 Park is ready.

[chris08876]

The time delay is kinda good IMO. There is a ton of inventory coming online soon, and it will help the prospects of this rising with a 3-4 year wait before serious progress is started. Best to get the blueprint ready, the legal aspect of things... soft costs pretty much... ready in time for a mid-2020's groundbreaking.

Exciting times ahead. As the current boom wraps up, we might see another one in a few years. I think we are overdue for a massive correction on a side note (we've been riding nicely for many years).

[chris08876]

Vornado’s Supertall 350 Park Avenue Gets Tentative 2027 Opening Date

Plans for 350 Park Avenue were revealed last year but we won’t see the supertall complete until 2027 at the earliest. In a 2019 fourth quarter earnings call last week for Vornado Realty Trust, the company confirmed that ongoing leases would conclude by end of 2023, which is the earliest it could begin to take down the current building and build the almost 1,500-foot-tall office skyscraper.

In order to build the supertall, construction would require the demolition of Vornado’s existing building on Park Avenue as well as the neighboring 23-story tower owned by Rudin Management. The site for 350 Park Avenue sits between 51st and 52nd Streets, near the 6 train at 51st Street subway station and the E and M trains at Lexington Avenue-53 Street station.

Given the location and market conditions, Vornado foresees 350 Park Avenue commanding top rents for the proposed Class A office building. However, the scale of the development will depend on the timing and joint venture agreements with Rudin.

“We can build on our own. We don’t need Rudin to build there,” said Michael J. Franco, president of Vornado during the earnings call. “We can build a 1-million-square-foot boutique building on that site on our own, or we can combine with Rudin who is behind this and build close to a 2-million-square-foot building.”

No announcements were made in regard to the architect or the design previously revealed in a brochure created by both Vornado and Rudin.

====================
NYY

[NYguy]

Placeholder...


https://receive.news/02/28/2020/the-...n-park-avenue/

The company’s financial Citadel expands on Park Avenue

Receive News
February 28, 2020

Citadel Securities, a market-making financial firm founded by hedge fund billionaire Ken Griffin, is ramping up its presence on Park Avenue as it continues to wait for its future Manhattan office to be finished.

The firm is planning to move into 425 Park Ave. along with Griffin’s similarly-named, but separate, hedge fund business Citadel. Construction of the glitzy new office building, however, has been marred by delays.

While Citadel Securities waits for the space, it is expanding at 350 Park Ave., where it is close to signing a deal for about 120,000 square feet. The lease will last roughly three years, giving the company time to continue to expand there while work continues on 425 Park Ave.

425 Park Ave.’s developer, L&L Holding Co., broke ground on the 47-story tower in mid-2016, originally saying that the ultra-high end office property would be complete by the end of 2018. The tower, which was designed by architect Norman Foster, was more difficult to build than originally anticipated.

The developers said they struggled installing a triangular-shaped lattice of steel beams on portions of the building’s facade. And because the tower’s ground breaking preceded a rezoning of Midtown East, the builders had to integrate portions of the previous office property at the site into the new structure to permit its nearly 700,000 square foot size. That process, which included preserving concrete floors and steel beams from the original structure, proved complex.

After the delays, L&L Holding Co. then said the building would be finished by early 2020. But Citadel Securities’ lease at 350 Park Ave. suggests the timeline has again been pushed back. Although the building appears nearly complete, construction continues. A spokesman for L&L Holding Co. declined to specify when it would be finished.

David Levinson, L&L Holding Co.’s chairman and CEO, insisted in an email that the building was close to complete, stating that he expected it would receive a temporary certificate of occupancy, a necessary approval from the city before tenants can move in, by the summer.

“Much of the building is already operational,” Levinson said, stating that its elevators and heating systems were functional.

Levinson indicated L&L Holding Co. had turned over floors at the property to Citadel and Citadel Securities to allow the firms to begin building out their offices – a step that generally happens close to a building’s completion.

“Citadel’s plans have been approved and we expect them to start construction in the near future,” Levinson said.

Chicago-based Citadel, which operates several hedge funds with over $30 billion in combined assets, leased over 200,000 square feet at 425 Park Ave. in 2016, paying around $300 per square foot, the highest ever office rent in the city, for the tower’s penthouse floor. Last year, the firm took over 100,000 square feet of additional space at 425 Park Ave.

Citadel Securities had been subleasing about 60,000 square feet at 350 Park Ave., an office building owned by Vornado Realty Trust. In the new lease, Citadel Securities will take an additional 60,000 square feet and will lease the entirety of the space directly from the building’s landlord.

The three-year timeline for the deal also suits Vornado, which has been contemplating tearing down 350 Park Ave. and developing a larger, state of the art office tower in its place using the Midtown East rezoning plan passed in 2017.

[DCReid]

Originally Posted by chris08876

Credit: siniaevart

I sure hope that trapezoidal mess of a skyscraper to the right of 270 never gets built. I think it would ruin midtown's skyline.

[JMKeynes]

I really hope that this is the design of 270 and 350.

[NYguy]

MAY 3, 2020

[JMKeynes]

Does anyone have an account? I'm curious if Rudin mentioned his 52nd St building in connection with the proposed 350 Park.

https://therealdeal.com/2020/06/02/b...easing-in-nyc/

[JMKeynes]

For every moron who predicts NY's demise as the capital of the world!

https://therealdeal.com/2020/07/29/b...-headquarters/

[chris08876]

^^^^

Very nice.

Blackstone, headed by CEO Stephen Schwarzman and president Jon Gray, has asked a handful landlords to submit proposals for a new headquarters in Midtown and the Far West Side.

Among the sites under consideration is a supertall office tower on Park Avenue proposed by Vornado Realty Trust and Rudin Management. The two have floated the idea of developing properties they separately own into a 1,450-foot-tall, 1.68 million-square-foot tower at 350 Park Avenue.

The project is particularly attractive to Blackstone, sources said, because the site sits catty-corner to the firm’s current headquarters at Rudin Management’s 345 Park Avenue. Between that location and another office at Boston Properties’ 601 Lexington Avenue, Blackstone occupies about 800,000 square feet on leases that expire in 2027.

Blackstone is looking at options to combine its offices and expand its footprint. The search is in its very early stages, and sources familiar with the process said Blackstone could also choose to renew and grow at 345 Park Avenue if space becomes available.

A spokesperson for Blackstone declined to comment.

Other sites under consideration include three developments in the Hudson Yards area: Tishman Speyer’s Spiral at 66 Hudson Boulevard, Related Companies’ 50 Hudson Yards and 3 Hudson Boulevard, which is being co-developed by Boston Properties and the Moinian Group.



[...]


Blackstone’s interest in a new Manhattan headquarters could be considered a vote of confidence for the city’s office market, which is suffering through an identity crisis as the shift to work from home during the coronavirus pandemic has many wondering if companies will abandon their central business district offices.

Gray earlier this month said people will eventually return to their office buildings, but “there will be less density, there will certainly be a lot less new construction.”

[NYguy]

I like it with the headline.


https://therealdeal.com/2020/07/29/b...-headquarters/

Blackstone eyes new 1M sf NYC headquarters
Financial giant has asked landlords to submit proposals for massive space




TRD New York
July 29, 2020

Blackstone, headed by CEO Stephen Schwarzman and president Jon Gray, has asked a handful landlords to submit proposals for a new headquarters in Midtown and the Far West Side.

Sorry Silvetstein.

Among the sites under consideration is a supertall office tower on Park Avenue proposed by Vornado Realty Trust and Rudin Management. The two have floated the idea of developing properties they separately own into a 1,450-foot-tall, 1.68 million-square-foot tower at 350 Park Avenue.

The project is particularly attractive to Blackstone, sources said, because the site sits catty-corner to the firm’s current headquarters at Rudin Management’s 345 Park Avenue. Between that location and another office at Boston Properties’ 601 Lexington Avenue, Blackstone occupies about 800,000 square feet on leases that expire in 2027.

...sources familiar with the process said Blackstone could also choose to renew and grow at 345 Park Avenue if space becomes available.

Other sites under consideration include three developments in the Hudson Yards area: Tishman Speyer’s Spiral at 66 Hudson Boulevard, Related Companies’ 50 Hudson Yards and 3 Hudson Boulevard, which is being co-developed by Boston Properties and the Moinian Group.

On its second-quarter earnings call Wednesday, Boston Properties said it had recently made a pitch to a large tenant.

I had forgotten that Boston Properties was involved with 3 Hudson Boulevard. I would rule out 50 Hudson and the Spiral though, because those buildings already have major anchors, who always get the bigger, lower floors. I would say 3 Hudson has a chance because it doesn't have a major tenant yet. And Boston Properties' 343 Madison isn't even large enough, at just 750,000 sf. But 350 Park would be the most attractive. There's also the Grand Hyatt to keep an eye on. They've been talking to potential tenants as well.

[JMKeynes]

KPMG and Blackstone could both move from Rudin’s 345 Park to a new 350 Park, and with the former largely empty, Rudin could raze it and prepare for the next supertower!

NYC, baby!

[NYguy]

The project is particularly attractive to Blackstone, sources said, because the site sits catty-corner to the firm’s current headquarters at Rudin Management’s 345 Park Avenue. Between that location and another office at Boston Properties’ 601 Lexington Avenue, Blackstone occupies about 800,000 square feet on leases that expire in 2027.

They can begin raising the buidings on site end of 2023, but likely early 2024. Enough time I believe to get this tower up by 2027.

From Vornado:

This is the single best development site on Park Avenue and likely midtown, and we will be keeping renewals short-term here in order to line up this site to a possible new development.

.....End of '23. And so that's the earliest that we could begin to take the building down. And so new delivery wouldn't be until '27 or '28.

Sounds doable.