Vornado Realty Belief is supersizing its Penn District growth ambitions, snapping up a Midtown McDonald’s and close by air rights in offers that would add tens of 1000’s of buildable sq. toes to a deliberate residential tower.
The developer paid $12 million for a one-story McDonald’s outpost at 490 Eighth Avenue, in line with metropolis data reported by Crain’s. The acquisition provides Vornado management of a 47-foot-wide parcel abutting its long-in-the-works assemblage on West thirty fourth Avenue, steps from Penn Station and Madison Sq. Backyard.
The McDonald’s deal comes with a twist: the fast-food chain isn’t going anyplace. Filings tied to the sale point out the restaurant will stay as a tenant and safe a retail spot in no matter Vornado in the end builds.
Vornado additionally bulked up the undertaking by buying roughly 66,000 sq. toes of air rights from neighboring properties. The agency paid $4.4 million for 31,000 sq. toes above 260 West thirty fifth Avenue and $4.8 million for one more 34,200 sq. toes from 254 West thirty fifth Avenue, in line with dealer Albert Sultan of KSR, who dealt with each transactions.
Data present the Haddad household was behind the sale at 260 West thirty fifth Avenue, and the Cayre household was behind 254 West thirty fifth Avenue.
The acquisitions are the newest strikes in a yearslong land seize that now spans 9 contiguous tons. Vornado has been quietly stitching collectively the location since 2015, although many of the shopping for exercise ramped up final 12 months. The assemblage as soon as housed low-rise retail, together with a TGI Friday’s and a pawn store, however is now largely cleared.
What all of this implies for the undertaking continues to be unclear. In September, the actual property funding belief informed buyers it deliberate to spend $350 million on a 475-unit condo tower on the website (plans filed this week included an additional six units). The newly acquired parcels and growth rights might enable for a taller or denser constructing, probably as much as 325 toes or extra, with further bonuses tied to reasonably priced housing.
A spokesperson for Vornado declined to remark.
The Penn District has turn into a key focus as the corporate repositions round mixed-use and residential performs tied to the transit hub’s long-term overhaul.
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