Vornado Realty Trust has revealed plans to invest about $350 million in a new apartment building across from Penn Station. The project, located at the northeast corner of West 34th Street and Eighth Avenue, will feature 475 rental units, according to Vornado president Michael Franco.
The company intends to utilize New York State’s 485x program, which provides tax incentives for developments that include affordable housing. However, Vornado has not specified how many of the planned units at 484 Eighth Avenue will be income-restricted.
This development is part of CEO Steven Roth’s ongoing effort to reshape the Penn District. The vision for the area had slowed during the pandemic, and public officials have since encouraged Vornado to focus on residential projects rather than office buildings.
Vornado has already invested $1.2 billion into upgrades at its Penn 1 and Penn 2 properties. The firm recently announced a pedestrian bridge connecting these towers’ second floors, but some community board members have expressed concerns about potential impacts on views of the Empire State Building.
Traditionally known for its office holdings—Vornado controls around 20 million square feet of commercial space—the company is shifting more toward residential real estate. Roth has publicly addressed New York City’s shortage of apartments as a reason for this strategic change.
Previously, Vornado has been involved in residential projects such as 220 Central Park South and Independence Plaza in Tribeca but has maintained an office-heavy portfolio until now.
The move toward rentals comes as Vornado considers selling high-profile office assets outside New York. Roth recently mentioned possible sales of Chicago’s Merchandise Mart and a 30 percent stake in San Francisco’s 555 California building, which is co-owned with the Trump Organization. Such transactions could further accelerate Vornado’s transition toward focusing on apartments in New York City.
