Vornado Realty Trust has acquired a majority of Related Companies’ ownership stake in the Farley Post Office project (AKA Moynihan Station). The REIT paid $41.5 million “plus additional costs funded to date” for an additional 44.9 percent of the redevelopment that sits across the street from Penn Station, according to CO.
Plans are becoming a reality: Construction has begun and the project is expected to be completed in 2020. It will include 730,000 SF of office space, 120,000 SF of retail, and a new train hall for the LIRR and Amtrak.
Heard on the Street: How Steve Roth views Related’s business model… “They’re in the business to create assets, create value and then harvest that value. We’re in the business much longer term than they are.”
Worth Noting: The Empire State Development Corporation (ESD) selected Related and Vornado for the $1.6 billion project. Financing is being split between the developers, ESD, Port Authority, MTA, and Amtrak.