Vornado Realty Trust has divulged some details about its long-simmering plans for a rental tower across from Penn Station.
The real estate investment trust is preparing to spend roughly $350 million to build a 475-unit apartment building at the northeast corner of West 34th Street and Eighth Avenue, Vornado president Michael Franco told investors.
The developer plans to leverage the state’s 485x program, which offers tax breaks for projects that include affordable housing, though details on how many units would be income-restricted at 484 Eighth Avenue weren’t disclosed, Crain’s reported.
The Eighth Avenue site is at the heart of Roth’s decades-old ambition to reimagine the Penn District. That vision stalled during the pandemic and elected officials have since urged Vornado to prioritize housing over glassy office spires.
The company has already sunk $1.2 billion into revamping Penn 1 and Penn 2. It recently unveiled plans for a pedestrian bridge linking the towers’ second floor, which drew pushback from community board members concerned about Empire State Building views.
The tower on Eighth Avenue would mark the latest in a major shift in strategy for Vornado, long synonymous with Midtown office towers. The firm controls 20 million square feet of commercial space but has been trimming its office footprint and leaning harder into residential. CEO Steven Roth has spent months signaling the pivot, calling out New York’s apartment shortage.
Vornado has dabbled in resi before — most notably with 220 Central Park South and its stake in Tribeca’s Independence Plaza — but its portfolio has remained office-heavy.
The rental play also comes as Vornado explores shedding trophy office assets elsewhere. Roth recently floated selling the Merchandise Mart in Chicago and its 30 percent stake in a Trump Organization-owned building at 555 California in San Francisco.
If executed, those exits could accelerate the REIT’s strategic refocus on New York apartments.— Holden Walter-Warner
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