Vornado eyes $350M Penn District rental tower

Vornado Realty Trust, which has been planning a rental tower near Penn Station for some time now, has finally revealed some specifics about the project. According to Vornado president Michael Franco, the real estate investment trust is looking to spend around $350 million to construct a 475-unit apartment building at the corner of West 34th Street and Eighth Avenue. This location is at the heart of Steven Roth's real estate empire.

The developer is planning to take advantage of New York State's 485x program, which offers tax breaks for projects that include affordable housing. However, details about how many units at 484 Eighth Avenue would be income-restricted have not yet been disclosed, as reported by Crain's.

The Eighth Avenue site, located in the Penn District, is highly coveted by developers due to its prime location. However, Vornado's plans for the site have been met with some controversy. In 2018, the developer faced pushback from local officials and community members for proposing a 68-story office tower on the site. The project was ultimately scrapped due to concerns about its impact on the neighborhood.

Despite this setback, Vornado has remained committed to developing the site and has shifted its focus to residential units. The 485x program allows developers to receive tax breaks in exchange for building affordable housing units, making it a lucrative option for Vornado. However, the lack of disclosure about the number of income-restricted units has raised some concerns about the project's affordability and whether it truly benefits the community.

It's no surprise that Vornado is looking to capitalize on this prime location, but it remains to be seen how the