NEW YORK | 2 Penn Plaza | 412 FT | 31 FLOORS

[NYguy]

Originally Posted by Submariner

Ugh. What a shame.

It is a shame. They're just making a bad situation worse.


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

Everybody knows that I think our Penn Plaza assets are our main event. I have even called Penn Plaza the Promised Land. Our transformation here will begin with Penn One and Penn Two, where we will create a two building 4.4 million square foot campus right on top of Penn Station. It will include a three block Grand Plaza along Seventh Avenue covered by a giant new bustle across the entire 400-foot frontage of Penn Two.

This bustle will extend 70 feet from the building and will be 45 feet above the street. It will serve a dual purpose. It will be striking, creating a huge covered plaza in front of our Penn Two and the main entrance to Penn Station, and bring the neighborhood into the modern age, and at the same time, it will create a 140,000 square feet of very valuable new two 20 foot-high best-in-class creative space. Images of this design will be posted on our website tomorrow under the call sign www.vno.com/portfolio/development.

The scale of our campus here allows us to provide our tenants with the best -- with the biggest and best unparalleled amenity package, even a giant leap forward from what many of you seen we have done at theMART. Also in Penn Plaza, we are well under way at Farley to deliver in 2020 the best creative space in Manhattan. We will be announcing later today that we are increasing our ownership in Farley.

And there's much more to come in the Penn district. These assets are at the heart of the new New York adjacent to the Hudson Yards and Manhattan West developments and sit literally on top of the busiest transportation hub in North America. And don't forget the adjacencies to Macy's, the biggest department store in the country, and Madison Square Garden.

At Penn One, we leased 82,000 square feet with 80% of that activity representing the movement of tenants from Penn Two. As you know, prior to year-end, we will commence our significant renovation program at Penn One that will transform this 2.6 million square foot asset with an expanded double height lobby, one acre of upgraded plazas, co-working and conflicting facilities, a robust amenity package with full offerings and tenant services spanning the entire second and third floors.

At Penn Two, we are now finalizing plans for a dramatic renovation and expansion of this existing 1.6 million square foot asset located directly on top of Penn Station, turning the two buildings Penn One and Penn Two into what will be a 4.4 million square foot campus. Penn Two project will include a full recladding of the facade, new mechanical systems, and new tenant entry sequence adjacent to Plaza 33 all integrated with a full amenity package, and as Steve mentioned, the addition of a striking four-story bustle that will transform both the existing building and the public realm.

In connection with this redevelopment, we will be vacating Penn Two up to the 10th floor, and we have begun relocating number of the tenants from Penn Two into Penn One. We anticipate starting physical work in Penn Two in the first quarter of 2020.