PENN District poised to grow by another block, replacing ‘junky retail;’ NYC loses retail giant
Vornado Realty Trust’s PENN District Expansion
Vornado Realty Trust is set to expand its PENN District transformation by an entire block.
The real estate investment trust plans to create a unified street-level experience on both sides of Seventh Avenue between West 33rd and 34th streets, replacing what Vornado chairman Steve Roth referred to as “junky retail.”
Over the past few years, Vornado has quietly acquired multiple parcels on the block. The next phase involves demolishing the existing unattractive buildings on both the east and west sides, with current tenants on short-term leases.
Roth has enlisted a top leasing team led by Newmark’s global retail chairman Mark Masinter to revitalize the district with new merchants. Vornado has already invested $2.5 billion in redeveloping old office buildings, introducing dining and shopping options in the Moynihan Train Hall, and creating a popular public plaza on West 33rd Street.
The district currently boasts over 5 million square feet of office space, public plazas, and numerous dining venues. The new Seventh Avenue storefronts will be housed in three-level “retail boxes” and focus on attracting retail stores rather than restaurants or fast-food outlets. Demolition is set to begin later this year, with the new spaces expected to be completed by 2027.
Vornado EVP Glen Weiss expressed his excitement for the transformative work in the neighborhood, aiming to make the Penn District retail environment a major attraction in New York City.
Additionally, Vornado has plans for a new skyscraper on the former Hotel Pennsylvania site, with talks underway with a major tenant to anchor a 1,000-foot-tall tower.
Remembering C. Bradley Mendelson
The retail world in New York mourns the loss of C. Bradley Mendelson, a legendary figure known for his dealmaking prowess over four decades at CBRE, Cushman & Wakefield, and Colliers International. Mendelson’s notable achievements include bringing Toys ‘R’ Us to Times Square and securing tenants for the former 666 Fifth Ave.
Mendelson was respected for his professionalism, insider knowledge, and generosity. He will be remembered for his many contributions to the industry.
Milk & Honey Cafe Opens in Coney Island
The opening of Milk & Honey cafe at LCOR’s 1515 Surf Ave. marks a new chapter for the twin-towered project overlooking the Coney Island Boardwalk.
Brooklyn’s third Milk & Honey location offers a casual dining experience in a modern setting by the beach. The project, featuring 463 apartments, has already leased 75% of its units, including 139 affordable units.
The development along Surf Avenue reflects the ongoing transformation of Coney Island into a vibrant residential and commercial hub.
