Shaking us out of our post-Kanye hangover (who knew an architecture critic could put on such a good show?) is this week's Observer, which carries quite the extravaganza: The 100 Most Powerful People in New York Real Estate. The list was constructed in a very eco-friendly manner: it's all about the green. Or in the Observer's words: "The list, especially higher up, contains those who animate the deals and the trends. They are the deciders and the money providers." The top dog, in an entry that was probably feverishly rewritten over the past few days, is Tishman Speyer CEO Jerry Speyer. The deuce spot goes to Mayor Bloomberg, and #3 is one of New York's more prominent Steves, Related CEO Stephen Ross (Vornado's Steven Roth is at #24). The highest-ranking broker is Elliman's controversial spark plug Dolly Lenz, at #25, and her former protegé and current nemesis Michael Shvo is the last to be included, at #100. In Shvo's eyes, we're not sure what would be the bigger insult: being last on the list, or being left off it entirely. We'd ask, but the sound of the Dubai wind whipping through his immaculate coiffure would probably make it too loud for him to hear us. Donald Trump, burn, is #38.
· The 100 Most Powerful People in New York Real Estate [NYO]
In today's installment of the Moynihan Station saga, Vornado Realty Trust and the Related Companies ask the state for a loan to build a new Madison Square Garden in the Farley Post Office. Will Garden Chairman Jim Dolan be interested or play hard to get? The Real Estate reports that the option is one of several the state is considering for the on again, off again (etc.) project. In this case, the state and the city could end up footing the $900M-$1B cost of the arena if the bigger project doesn't happen. Of course, regular viewers of the Moynihan series will recall the deal pretty much fell apart already when the Garden announced a $500M renovation of the existing arena. So Vornado and Related are now proposing that the arena go first and the state and city assume the financial risk if the bigger plan stall. At last report, Dolan was said to be uninterested. Stay tuned for tomorrow's developments.
· Vornado, Related Try to Lure Garden Back to Moynihan Station Table [TRE]
· Moynihan Station Deathblow: MSG Pulls Out of Plan? [Curbed]
HARLEM—It looks like it's time to ratchet up the pressure to approve the rezoning of 125th Street. Today, Community Board 11 sent out a press release announcing a $1.4 million deal reached in mid-March with Vornado over its Harlem Park building that will include Major League Baseball's cable network as a tenant. The money will be divvied up for things like job training and streetscape improvements. The rezoning got conditional support from Community Boards 9 & 11 and conditional disapproval from Community Board 10. Per an email from Community Board 11, which approved the deal with Vornado: "The development team was looking for community support for an amendment to the New York City Department of City Planning’s 125th Street Corridor Rezoning Plan." [CurbedWire Inbox]
IN THE PARKS—In another sign that Spring is here, tomorrow is the official opening day for ballfields in parks around the city. Also, for those keeping track, cricket fields also open tomorrow. Here are some other opening days: lawn bowling & croquet fields on April 26, beaches on May 24 and pools on June 27. [CurbedWire Inbox]
The first 90 days of the year saw only two prominent office buildings change hands, as recession fears have dried up financing for investment sales. Yes, the situation is bad, perhaps the worst in decades, especially when one takes into consideration a couple of quotes from some heavy-hitters. Says Larry Silverstein, "During my entire career of more than 55 years in real estate, I have never seen a dislocation of the capital markets of this magnitude." And from Vornado CEO Steven Roth: "Based on the current climate in commercial real estate, investment sales brokers can take off for the entire year." You hear that, brokers? Steve said you can take the year off! [Sun]
Now that the Durst Organization and Vornado Realty Trust are also-rans in the Hudson Yards sweepstakes (but hey, a silver medal ain't bad), the companies' proposed anchor tenant—magazine megapublisher Condé Nast—may be looking to switch sides. In today's Women's Wear Daily (a Condé title), Amy Wicks writes that the company "possibly has a shot at office space under Tishman Speyer's plan." Also, Morgan Stanley may be back on board, even though they dumped Tishman a little while back. Oh, so now that Tishman is the hot shit in town, you want to get back together, Morgan? Yeesh! Anyway, getting back to Condé Nast, a memo was sent out to employees by COO John Bellando that read:
Last October, I informed you of our intention to consider constructing a new office tower in connection with a proposal by The Durst Organization and Vornado Realty Group to develop the West Side Rail Yard - also known as the Hudson Yards.
Yesterday, the Metropolitan Transportation Authority selected a different bidder to develop this property. However, several other promising real estate development opportunities have been brought to our attention and we intend to continue to explore all of our options for a new office tower in the 2013 - 2016 timeframe.
With Tishman Speyernow in the driver's seat at the Hudson Yards (proposal images above), let's take a closer look at the West Side's new overlords. Founded in 1978 by partners Robert Tishman and Jerry Speyer, Tishman Speyer has grown to become one of the largest real estate development/investment/management firms in the country, if not—dramatic pause—the world. Signature properties in Tishman Speyer's portfolio include the Chrysler Building, Rockefeller Center and Berlin's Sony Center.
In 2006, Tishman Speyer purchased the middle-class enclave of Stuyvesant Town/Peter Cooper Village in Manhattan for a record $5.4 billion, and the company has been busy gussying it up and shifting the apartments to pricey market-rate rentals. Soon after, the company set another record, selling the office building at 666 Fifth Avenue for $1.8 billion. Phew. OK, now that that's settled, let's focus on the future of the rail yards, twice the acreage of the World Trade Center and almost as complicated. The $1.004 billion deal with the MTA for the development rights may be settles, but there are many questions left to be answered.
With megalandlord Tishman Speyer nearly in possession of the West Side Rail Yards, the other bid still in consideration—the joint proposal made by the Durst Organization and Vornado Realty Trust—is getting a late push to remain in the Hudson Yards conversation (above, a refresher on the eco-friendly, slightly insane Durst/Vornado bid, designed by FXFowle and Pelli Clarke Pelli). Charles Bagli wades into the showdown in the Times today, and here's why the Durst/Vornado bid makes sense, according to some: 1) Durst/Vornado has an anchor tenant in place for office space, Condé Nast. Morgan Stanley dropped out of Tishman's bid. 2) The Durst/Vornado proposal includes twice as much housing (7,000 units), seen as a safer bet in these troubled times than Tishman's office-heavy plan. 3) Tishman Speyer came in dead last in our Hudson Yards poll. OK, the MTA probably isn't taking that one into consideration. So why are the powers-that-be leaning toward Tishman Speyer? Because of the company's "blue-chip aura and its access to capital from around the world," Bagli writes. Well, if those are the characteristics that matter, we should feel lucky the MTA didn't enlist Bear Stearns to help out with financing.
· At 11th Hour, Rivals Vie for Deal on West Side Railyards [NYT]
· West Side Yard [durstvornado.com]
· Yardsmania Update-o-rama: Tishman Must Get Sexy? [Curbed]
· CurbedWire Special: Tishman Speyer Taking Hudson Yards? [Curbed]
After weeks of closed-door wheeling and dealing, the Hudson Yards—soon to be the biggest development project in the city, if the whole thing doesn't completely fall apart—have exploded with activity. Here, a primer on the most recent headlines:
1) The Winner: The Timesreported it over the weekend, and the Sun echoes it today: the MTA is on the verge of announcing that Tishman Speyer is the winning bidder for the rail yards, with the joint Vornado/Durst bid still in play. The board will meet on Wednesday, perhaps to approve a deal. The MTA had initially set this week as the deadline, and even though there were rumors the decision would be delayed, it looks like the MTA may actually deliver on a promise. If you want to review Tishman's bid, here you go. [Sun]
Um, about that delay. Well, it looks like it was a very brief one. The Real Estate is reporting that the MTA may choose a winning bid for the Hudson Yards as soon as tonight, with the list being whittled down to Tishman Speyer's officepalooza and the joint Durst/Vornado High Line-destroying hippie lovefest. Yes, the early favorite—The Related Companies' News Corp.-loaded Rupert Murdoch playground, is doneski, at least per these anonymous sources. The problem is that Murdochville, oddly, doesn't have a firm commitment from News Corp., though that line of thought doesn't make much sense because Tishman recently lost Morgan Stanley as its anchor tenant, but that doesn't seem to be hampering the bid. Should a West Side Rail Yards selection be made, it would need to be finalized by the MTA board, perhaps at its Wednesday meeting. In the biggest sense of the word: DEVELOPING...
· Durst/Vornado and Tishman Speyer Lead as Decision Close on West Side Yards [TRE]
· The Other Big Rail Yards Thing is Also Kinda Screwed Up [Curbed]
· Full Curbed Hudson Yards Coverage [Curbed]
With a decision on the Hudson Yards bids supposedly one month away, the MTA has chucked a curveball right at the groins of competing developers Extell, Related, Tishman Speyer, Vornado/Durst and Brookfield Properties. Over the weekend, Charles Bagli reported in the Times that the MTA has cold feet about selling the 26 acres of prime waterfront land currently serving as the West Side rail yards. Now, the MTA has two new requests: the winning developer gets a 99-year lease, and the MTA gets an "equity-type interest" in any project built on the land. Whoa now! It's like the cash-strapped MTA woke up one day and was like, "Oh crap, we forgot about the billions more we could be making off this one piece of land!" But how will the developers react to these new demands? As Bagli points out, the move comes right when commercial developers are growing uneasy about the market and the economy. One anonymous bidder told the Times, "I think these people don't realize what the financial climate is like." Another classic case of the unpredictable MTA doing its thing, or an awesome muscle move because—in the end—the winner will pay whatever it takes to get the deal done?
· New Bids Are Sought for Building on Railyards [NYT]
· Yardsmania Nonshocker: Underdogs Still Underdogs [Curbed]
· Yardsmania: Is Related's Murdochville Inevitable? [Curbed]
· Curbed Poll Reminder: The Hudson Yards Winner Is... [Curbed]
For months, we've wondered what companies Vornado was luring to Harlem Park, the mind-exploding new office building planned for 125th Street and Park Avenue. Since it would be the first Class A office tower built in Harlem in decades, we assumed Vornado was swinging for the fences. And how! Charles Bagli reports in the Times that at yesterday's Planning Commission hearing on the controversial 125th Street rezoning proposal, Vornado revealed that Major League Baseball will base its new cable network out of the building. Vornado is also negotiating with the Inner City Broadcasting Network radio conglomerate to take some of space. The rezone would limit building height to 290 feet on the north side of 125th Street, and Harlem Park is slated for 305 feet, including 40 additional feet for satellite equipment and antennas. Vornado would need a height variance for the 21-story building, or, if denied, they could pull the plug on the whole thing and deny the people of Harlem the big stack of boxes they so richly deserve. And that, friends, would be a tragic swing-and-a-miss.
· Office Tower to Rise in Harlem for Baseball TV Network [NYT]
· 125th St. development wants to break proposed height limit [TRD]
· Harlem's Box Actively Recruiting [Curbed]
The Wall Street Journal is reporting that Merrill Lynch is close to signing a lease renewal at the World Financial Center in Lower Manhattan (right), where the financial services giant is currently inked through 2013. The company was supposed to move to a new skyscraper built just for them in Midtown, on the site that now holds the Hotel Pennsylvania. Then there were some complications, and then Governor Spitzer tried to get the company to move to one of the new World Trade Center towers, and now, it all seems like much ado about nothing. But what does this mean for the Hotel Pennsylvania? Clearly Vornado would still love to tear it down and build something new and shiny, but does Merrill's abandonment of the project inadvertently help the campaign to landmark the building?
· Merrill Shelves Plan For New Headquarters [WSJ]
· Return of the Heavy Tug: Merrill to WTC Tower 3? [Curbed]
· Commence Heavy Tugging: Merrill Move in Jeopardy? [Curbed]
Even though the effort to save the Hotel Pennsylvania on Seventh Avenue still has a long way to go, owner Vornado has to be getting a little nervous. After a subcommittee voted to recommend landmarking the 1919 McKim, Mead & White-designed legend, last night the full Community Board 5 also voted in favor of preserving the hotel, The Real Estate reports. Vornado wants to knock the sucker down and build a new office tower for Merrill Lynch or someone else, and they probably will. Like TRE's Chris Shott writes, the hotel doesn't have the support of major preservationists, and it's a long shot to be spared by the Landmarks Preservation Commission. Still, the hearing had some fireworks, with some Hotel Penn employees speaking out against Vornado (hope they checked out their employment status this morning) and one supporter even arguing that the hotel is more culturally significant than Plymouth Rock. No stuffing for you, friend!
· 'A Vote of Conscience': CB5 Moves To Protect Hotel Pennsylvania [TRE]
· Commence Heavy Tugging: Merrill Move in Jeopardy? [Curbed]
· Preservationists Shun Unloved Hotel Pennsylvania [Curbed]
The Observer files their report on the Hudson Yards bids today, and they agree with pretty much every expert's take: Related, Tishman Speyer and Vornado/Durst are the frontrunners to win the development rights because they already have corporate partners raring to move in (News Corp., Morgan Stanley and Conde Nast, respectively), and Brookfield and Extell are the dark horses. The good news is that the MTA will eventually show the proposals to the public, which was sort of unclear. State Senator Tom Duane will meet with the MTA to decide the how and when in the next couple of weeks. Will our Curban Planning winner be on display right next to the big dogs' designs? Probably not, but we're cool with that as long as we get to see some people mover napkin sketches.
· It Begins: Titans Bid On Western Rail Yards [NYO]
· Hudson Yards: Bankers vs. Hotties (& Three Other Bids) [Curbed]
The bids are in on for the 26-acre Hudson Yards development site. The various projects could include up to 24 million square feet of office space and 13,000 apartments. There will be a decision by spring, give or take, from the MTA, which will select the winner. How one feels about the bidders depends on the relative value one places on, say, bankers versus fashion models and writers, etc. Here's the list:
You know the drill: Developer threatens to tear down historically-significant building. Preservationists get in a tizzy and mount a campaign to save it. Success or failure follows. That awkward silence you hear? The absence of Birkenstocks rushing to the aid of the McKim, Mead & White–designed Hotel Pennsylvania on Seventh Avenue, which Vornado wants to tear down to build an office tower roughly the height of the Empire State Building. The Observer's Chris Shott has an update on the "fight" to save the hotel, which is basically one dude campaigning to landmark the sucker. The usual suspects are all more concerned about the nearby Farley Post Office to bother caring about this neglected home for transients. Last time we checked in at the Hotel Pennsylvania, we had some fun with the TripAdvisor user photos of it. Today, we go back to the well. Looking, uh, good!
· The Lonely Fight For The Hotel Pennsylvania [NYO]
· What a Sub-$200 Hotel Room Gets You in Manhattan [Curbed]
Vornado's Harlem Park, the 21-story office tower on 125th Street and Park Avenue first revealed to us in March before going on to further explode our minds all summer, has updated its website with all sorts of new goodies. There's plenty of floorplans and new renderings, including the above, which shows a street-level retail view and doesn't even hint at the insanity lurking above. Still no word on what companies have signed on to take up some of that 540,000 square feet of office space, but that's merely a subplot to the construction of this wonder.
· Harlem Park [harlempark.com]
· Super Bonus Mind-Exploding Harlem Box Rendering! [Curbed]
· What's Crawling Into Harlem's Box? [Curbed]
When we last left the insanity that is Vornado's Harlem Park project at Park and 125th Street, we didn't have many details other than the mind-exploding rendering (above; explosion!). Along comes Bloomberg (the news outlet, not the dude) to fill in some blanks. The 21-story, 640,000-square-foot tower will be for offices, obvs, making it Harlem's first new office tower in decades. Rents could dip under $50/sf, and about 11% of the building is already leased (whether that's to any private sector tenants remains to be seen). Said a Vornado exec, "We didn't want to build a boring midtown office building. We wanted to do something that fit contextually with the unique nature of the Harlem community.'' Well, it is unique, we'll give him that. Expect the shebang to be done in 2009. Also of note: The Harlem Park website has unveiled a snazzy new logo! Fun!
· Vornado Plans First Harlem Office Tower in Decades [Bloomberg]
· Vornado's Harlem Park Insanity Revealed [Curbed]
What we see here is a rendering for an office tower that may yet rise atop the Port Authority Bus Terminal at 42nd Street and Eighth Avenue. Brief backgrounder: back in 1999, the Port Authority chose Vornado and the Lawrence Rubin Company to develop a tower above the terminal. The plan faltered post-9/11. Now, the Port Authority will negotiate exclusively with—er, Vornado and the Lawrence Rubin Company—for the right to build the thing after all.
There remains one pressing question: what does this mean for professors at Amherst? We're glad you asked:
Some skeptics point to a loss in the neighborhood's resurgence. "The new tower will signify how Times Square has lost its mixed-class atmosphere," a professor of architecture and history at the University of Massachusetts, Amherst, Max Page, said. "No one should long for seediness and drug-dealing and crime, but there was a wider range of amusements and appeal to a wider range of people. Now it's an-upper middle-class place."
Remember Harlem Park? That bizarro 34-story Marriott/office/condo tower slated to go up on the empty lot at Park and 125th Street that never got built? (Except on the web, natch, where the project "Coming Fall 2006!" lives on in glory.) And remember how, just over a year ago, Vornado snatched up the land, promising an even larger development?
So, yeah, turns out they were serious. Above, check the first rendering we've seen for Vornado's plan for the site—a huge-ass office tower. Nigel from NSNYRE tells Curbed, "I was scanning the commercial MLS where I ran into this beauty. It just got on the market 17 days ago—570,000SF, completion in 2009. Building seems to be being built without an anchor tenant. Office space has been notoriously slow paced around these parts, but Vornado definitely hopes to be the first of a Manhattan expansion north. Bagel leaves, Vornado moves in... did she cry uncle too soon?" Whether the project will continue to be known as Harlem Park remains to be seen, but anyway, uh, holy shit?
· Harlem Park Update: Bigger, Better, and with Change of Existing [Curbed]
· Whither Harlem Park at Park and 125th [Curbed]
Comments
Now that the Durst Organization and Vornado Realty Trust are also-rans in the Hudson Yards sweepstakes (but hey, a silver medal ain't bad), the companies' proposed anchor tenant—magazine megapublisher Condé Nast—may be looking to switch sides. In today's 
After weeks of closed-door wheeling and dealing, the Hudson Yards—soon to be the biggest development project in the city, if the whole thing doesn't completely fall apart—have exploded with activity. Here, a primer on the most recent headlines:
The Wall Street Journal is 
Even though the effort to save the Hotel Pennsylvania on Seventh Avenue still has a long way to go, owner Vornado has to be getting a little nervous. After a subcommittee voted to recommend landmarking the 1919 McKim, Mead & White-designed legend, last night the full Community Board 5 also voted in favor of preserving the hotel, 
The 
What we see here is a rendering for an office tower that may yet rise atop the Port Authority Bus Terminal at 42nd Street and Eighth Avenue. Brief backgrounder: back in 1999, the Port Authority chose Vornado and the Lawrence Rubin Company to develop a tower above the terminal. The plan faltered post-9/11. Now, the Port Authority will negotiate exclusively with—er, Vornado and the Lawrence Rubin Company—for the right to build the thing after all. 
