2.12.19 - Vornado is planning to pump its luxury condo cash into a Midtown post office
'The real estate investment trust says it's planning to dedicate 220 Central Park South's estimated $1 billion in profits to the redevelopment of the Farley Post Office (known as Moynihan Station), as well as its One and Two Penn Plaza. There's a lot to unpack here, but let's start with this: Vornado owns a 95 percent stake in the 900,000-square-foot office-and-retail project at Farley, and CEO Steve Roth today said it would be a desirable landing spot for a well-capitalized creative tenant.'
'The company, which, remember, is Facebook's landlord in New York, also plans to overhaul One and Two Penn Plaza by combining them into a connected 4.4 million-square-foot mega-campus, with an expected cost of $200 million. Roth said 220 CPS proceeds should pretty much cover the costs of these renovations, and he doesn't expect to take on much new debt, if any. That allows for a lot more freedom and fatter profit margins.'