Jones Lang LaSalle


Vornado Talks Up Moynihan Station
By Barbara Jarvie

NEW YORK CITY-Moynihan Station plans and international investment were two of the subjects discussed during an investor call with Vornado Realty Trust officials. The firm’s Penn Plaza concentration, which encompasses the Moynihan Station effort, is being called the "gateway to the Far West Side," said David R. Greenbaum, president of the New York Division.

The total redevelopment aggregates 16 acres and approximately 8.5 million sf of real estate product. Plans do call for moving the current Madison Square Garden one block over. The effort will be separated into Moynihan East and Moynihan West. "We’re working on this 24 hours a day," Greenbaum said.
Michael D. Fascitelli, president and trustee, pointed out that India--where the firm already has a $25-million dollar investment--has "enormous profit potential." He believes the firm will "hopefully increase" its investment in that country. When it comes to investing in other countries, he said the "European market is very interesting and very expensive." Steven Roth, chairman of the board and CEO, added that the Vornado "should take a more international view. We’ll look abroad with enormous care and restraint. We’re getting the itch." He also noted that REIT legislation is "sweeping the world."

Vornado officials are also concentrating efforts in the Washington DC area, where as many as 290,000 new jobs are anticipated. "Crystal City is our biggest opportunity so far," said Mitchell N. Schear, president of Charles E. Smith Commercial Realty Division. "It’s proven itself to be one of the strongest markets in the country."

"Vornado is a big group, but size is not our goal. Making money is our goal," said Roth. "Our balance sheet is a fortress. With regard to the Toys ‘R’ Us acquisition, he advised, "Make babies and buy a lot of toys. We’re begging you."

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